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Open Innovation

From Open Innovation: The New Imperative for Creating and Profiting from Technology by Henry William Chesbrough:

In today’s information-rich environment, companies can no longer afford to rely entirely on their own ideas to advance their business, nor can they restrict their innovations to a single path to market. As a result, says Harvard Business School professor Henry W. Chesbrough, the traditional model for innovation–which has been largely internally focused, closed off from outside ideas and technologies–is becoming obsolete. Emerging in its place is a new paradigm, “open innovation,” which strategically leverages internal and external sources of ideas and takes them to market through multiple paths.

I think many people wonder how there are so many successful, open-source projects - I mean, honestly, <sarcasm> without tons of corporate funding, patent-laws, trade-marks, industry secrets, and structured R&D, how does anything worthwhile, that’s “open-source” get built? </sarcasm> Perhaps it is for those exact lack of conditions that truly open innovation occurs.

I’m of the mindset that value is derived from a little bit more complicated formula than “how much?” In an increasingly service-oriented economy, it makes sense that one would pay for services, for time, for opportunity, but not for access to information, not for pre-packaged, marked-up goods, not licenses, not perpetuation of protectionist laws.

On a separate note, how does an increasingly intangible, service-oriented market affect something like the Fair Tax?

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