pa TT erns 111 open b usiness Models Closed Open The smart people in our field work for us. We need to work with smart people both inside and outside our company. To profit from research and development (R&D), we must discover it, develop it, and ship it ourselves. External R&D can create significant value; internal R&D is needed to claim some por- tion of that value. If we conduct most of the best research in the industry, we will win. We don't have to originate the research to benefit from it. If we create the most or the best ideas in the industry, we will win. If we make the best use of internal and external ideas, we will win. We should control our innovation process, so that competitors don't profit from our ideas. We should profit from others' use of our innovations, and we should buy others' intellectual property (IP) whenever it advances our own interests. Source: Adapted from Chesbrough, 2003 and Wikipedia, 2009. PRINCIPLES OF INNOVATION bmgen_final.indd 111 6/15/10 5:38 PM