OPEN INNOVATION – STRATEGIC APPROACH TO THE DEVELOPMENT OF COMPANIES IN A GLOBAL SETTING

Radka Ivanova

Chief Asst. Prof. PhD., University of Economics Varna, BULGARIA, r.ivanova@ue-varna.bg

Abstract

Innovation and innovative development of organisations are closely related to the need for continuous increase of competitive advantages and improvement of market positions. Innovation makes it possible to achieve efficient competitiveness, enlarge the user circle, and improve the financial results from the company activities. The decisions made in the sphere of innovation have a long-term impact on the organisations as a whole, since they are under the influence of such factors as globalisation, turbulent externalities, instability of markets, a high level of depletion of natural resources and drastically limited free access to them, etc. This requires searching for new ways and implementing different approaches so that innovation activities can be carried out. Success depends on the choice of a suitable development strategy, i.e. a strategy in conformity with the environment and the orientation of the company (Ts. Zafirova, 2008, р. 17). In this way, each economic entity will be able to concentrate their efforts on their strong sides, in order to achieve competitive strategic advantages. Cooperation among organisations allows for consolidation of resources, risk sharing, reducing the timelines needed for commercialising new ideas and their transforming onto innovations. The transition from a closed to open innovation allows for improvement of the innovation processes, including their expediting and fuller meeting of user requirements. Open innovation widens the access to new ideas, technologies, specialists and allows for the obtaining of financial and other benefits, including ideas, which need further development, so that they can be introduced into the market.

Keywords: closed innovation, open innovation, management, organization