Structure and Key Factors of Open Innovation of SMEs in Manufacturing Industry

This document explains and demonstrates how to do open innovation in small firm from ideal generation through product development to marketing. We had chances to see results of open innovation case studies of Big companies such as IBM, Intel, or 3M (ChesbroughHenry, 2003). In addition, nowadays there are a lot of survey researches about big and small firms (van de VrandeVareska, de JongJeroen, VanhaverbekeWim, de RochemontMaurice, 2008) (LaursenKeld & SalterAmmon, 2006). But, we did not have a chance to look into the open innovation realities of small firms. Open innovation of small firms which do not have enough R&D resources and internal researchers is essential for survival and development. In this study, we will deeply look into the open innovation of s small farm in the total process of product development and marketing. From idea generation, small firm can do open innovation and it is required to develop new product continuously. In the process of new product development, small firm should do active open innovation to conquer restriction of inner technology and research capability. In the end, at the marketing step, small firm should utilize outsourcing or outside capacities. In this research, we will find out real open innovation from idea generation through new product development to marketing in small firm by case study of a Korean firm.