As more and more companies openly collaborate and innovate with third parties, the question of proper intellectual property (IP) management arises. The companies have to rethink their innovation models and strike a balance between what knowledge they share with partners and stakeholders and what they can gain from collaborations with them.

If a company manages poorly its relations with external stakeholders, it can be at risk of distributing confidential information related to its intellectual property and losing profits from innovation.
 
According to the European IPR Helpdesk, open innovation can be carried out in various forms, such as:

• Networking and crowdsourcing
• Collaboration and R&D alliances
• Independent spin-offs dedicated to the development of a new project
• Licensing
• Patent pool

In order to protect their assets and maximize future gains from open innovation, companies should implement internal IP protection measures in the early stages of collaboration. This can be accomplished by:

• Setting up an internal filing system to track any creation of IP assets
• Documenting each IP element
• Creating an IP database and keeping it up to date
• Organising regular reviews of the IP used
• Securing confidentiality internally and externally
• Third parties IP rights (freedom to operate; infringement)

 
When collaborating, parties often disclose know-how and technologies that have not been protected yet. To avoid potential misuse of such information, it is highly recommended to conclude a non-disclosure agreement (NDA) that establishes the conditions of collaboration and sharing of sensitive information between partners.


Author
European Startup Network
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Industry 4.0 enabled by the Internet of Things (IoT) allows for the integration of people, assets and applications within a company. It also contributes to the integration of a company with its wider ecosystem, which probably consists of customers, subcontractors, suppliers and R&D partners.
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Major trends that encourage Industry 4.0 are shorter product and service lifecycles and therefore the need to speed up time to market. Thus, the need for innovation will be increased. It might bring organisations to their limit in terms of innovation capacity and capabilities internally. Open Innovation can be an approach to master the innovation game and to stay competitive in fast-changing markets.
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The term Open Innovation was coined by Henry Chesbrough, a professor at UC Berkeley`s Haas Business School. In his definition it is “the use of purposive inflows and outflows of knowledge to accelerate internal innovation and to expand the markets for external use of innovation”.  This is based on the acknowledgement that knowledge and experience within an organisation is limited and that internal regulations/processes might even cause further limitations to evoke innovation.

The most prominent challenge that comes along with Open Innovation is how to handle the intellectual property (IP). The collaboration with third parties in innovation could create conflicts about IP ownership and raise the question of which part of the innovation will be owned by whom.
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Thus, it is a good idea to have a contractual regulation between the organisations for the processes of open and connected innovation fostered by Industry 4.0. There could be also a framework agreement between the organisations, that will set the rules under which joint innovation will take place.
 

Author 
Inqubator Leeuwarden

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​Several domain leaders are looking to collaborate with start-up companies that are more open to novel approaches and flexible in their approach towards manufacturing. These start-ups usually focus on creating new technologies that can enhance the capabilities of existing organizations by leaps and bounds.

​Another major benefit of partnering with start-ups is that they are smaller in size and it is easier for them to adapt to the changing business ecosystem. Finally, services offered by start-ups that are just beginning to gain scale in the market are usually priced low and are easily affordable. Thus, organizations can save huge amounts by opting for start-ups instead of established companies for their collaborations.

Moreover, start-ups usually come armed with a variety of new-age entrepreneurs that are skilled in several cutting-edge disciplines. The exchange of novel thoughts and ideas between individuals who have worked on and with leading technologies is always a huge plus for evolving companies.
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Keeping in mind that digitization will be at the heart of these collaborations, here are some key factors that can lead to a successful collaboration between organizations:
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• Take Small Steps: An organization, after collaborating with an innovative service provider, might remain in the stage of implementation for a prolonged period of time. During this time, organizations should focus on acquiring technological capabilities in an efficient manner instead of trying to fast-track the results.
• Devise New Products: While looking to collaborate to acquire industry 4.0 capabilities, it is always a good idea to commence the partnership with a fresh product. In this way, the company offering its technological expertise can test its developing technology in tandem with an established corporation.
• Look Beyond the first Project: While collaborating with one or more companies, it is important for a manufacturer to focus on long-term synergy. Aligned strategies and goals along with similar long term visions make for more fruitful collaborations between organizations.

Currently, rapidly evolving trends and multitudes of challenges exist in the manufacturing industry. Along with widespread technological uptake, companies will have to go through complete mindset shifts in order to survive in the 4th industrial revolution. Organizations carrying out business alongside each other will be required to become one unit, to share digital technologies and infrastructures and remain competitive in this ever-evolving business landscape.  


Author
Inqubator Leeuwarden

Different from the traditional R&D business model that keeps all the information internal, companies who embrace Open Innovation let the door open and ask for external ideas to solve their current business challenges more efficiently.
 
According to the article Could Open Innovation save the world? (Fitzgerald, 2020), there are few aspects that Open Innovation can bring benefits to the company:

• Identify some fantastic innovations that can complement companies’ own business solutions and benefit their clients
• Bring new discoveries, simplify the operation and bring new products to market in the shorter period
• The partnership with the external party can let the companies jump out of the routine, approaching the existing problems from different angles

 

The World Economic Forum is providing a manual to help startups and corporates work together.
The White Paper illustrates the Benefits for each side, going through Risks they should be aware of, and it finishes with the Challenges they both groups are facing when working together. The main conclusion is that they have to develop a common understanding of collaboration.