InnoCentive: Profile

by: Scott Moore

Publication Date: February 11, 2010
Length: 6 pages
Product ID#: 1-429-036

Core Disciplines: Entrepreneurship & Innovation, Information - Technology & Management, Strategy & Management

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Teaching Note

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This is a concise profile of InnoCentive—the company that created the first online marketplace for corporate research and development (R&D). It can be used to highlight how advancements in IT have spurred changes in the ways that companies perform R&D. This profile reviews the basic structure of InnoCentive’s “Open Innovation Marketplace”, who the players are in the marketplace, and the advantages of having an online network for sharing R&D problems and solutions. It also introduces the challenge of managing intellectual properties rights (IPR) on open online marketplaces. This profile is intended to be taught in conjunction with the Bell Labs profile in order to compare two distinct models of corporate R&D.

Teaching Objectives

After reading and discussing the material, students should:

  • Describe the services provided by InnoCentive to its customers.
  • Understand how information technology enables this market, and this company, to exist.
  • Identify the pros and cons of this model of corporate R&D, as compared to that of a company like Bell Labs.