The model of open innovation promoted by Henry Chesbrough in his 2005 book “Open Innovation: The New Imperative for Creating And Profiting from Technology” embraces the management of distributed knowledge flows across interfirm networks. Within the open innovation model, knowledge flows inside and outside the firm. Greater value is created through these interactions between firms. In a 2013 survey conducted by pwc, 32% of firms said they are considering open innovation as the path to innovation that would drive the most growth for their company. Of these companies, 40% of healthcare firms acknowledged open innovation as a strategic path to innovation. The open innovation model is highly dependent on a healthy innovation ecosystem and high trust network. In the model, Chesbrough describes four types of innovation generators. Each of them serves an important role within the ecosystem.
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