Creating innovative technologies with external technology providers involves risk. Internally, development activities and intellectual property rights are controlled. In contrast, working with an external technology provider involves sharing, removes complete control over the effort, and creates fuzzy lines regarding intellectual property due to the joint nature of discovery.
When external innovation is embraced, despite the risks, it helps a corporation to succeed. Managing issues with respect to each individual party’s concerns mitigates risk and builds trust. Well-managed risk provides the following key benefits:
In summary, well-managed technology development with an external entity can unlock greater success than would have been achieved through internal development efforts alone.