Which of the following statements accurately brings out the difference between closed innovation and open innovation?
A) Firms following the open innovation model are much more likely to be prone to the not-invented-here syndrome than firms pursuing a closed innovation model.
B) While open innovation focuses on building an effective business model to commercialize R&D, closed innovation focuses on being first to market.
C) Firms following the open innovation model are more protective about their intellectual property than firms pursuing a closed innovation model.
D) While open innovation means introducing new technologies to new markets, closed innovation refers to introducing new technologies to existing markets.

Question

Quizplus · Accepted Answer

In closed innovation, strength in R&D is equated with a high likelihood of benefitting from first-mover advantages. In open innovation, the focus is on building a more effective business model to commercialize (internal and external) R&D, rather than focusing on being first to market.

Which of the Following Statements Accurately Brings Out the Difference