Advantage and Disadvantage of Open Innovation Versus Stage


Open Innovation is a paradigm that belief in world full of knowledge, we cannot rely on only our own sources but also get the idea from another party, by building a partnership or buying the idea, although it has a danger that we can reveal an information that not meant to be shared but it has a bigger chance hitting the market successfully.

Gate innovation contains that technology can be developed both from technical and market perspectives. If the activity of the stage is not satisfactory, the project can be stop before making further expense.


Talking about advantages, Open Innovation can really hit the target market because not only they are reducing cost of research, by collaborating from other parties they can focused on other things so they can increase the success of developing the product, as for the Stage Gate Innovation, its advantages is they can map the innovation process and reducing the cost as they can stop the development if the result of one process is not encouraging enough to proceed to the next step.

As for the Disadvantages, the Open Innovation can be resulted into leaked information that supposed not be shared outside the company, and the increase of complexity of controlling the innovation rights as they are not truly belong to one party, and for the Stage Gate, the disadvantages is that by using the method the probability of hitting the target market is not as high as open innovation, because the one using this method must simultaneously research about the market and the technical, reducing the chance of hitting the target market and at the same time increasing the cost of production.

Personal Opinion

Both of the method has its advantages and disadvantages, it is hard to choose one that is truly right one because there is no certain things in the world of business and innovation, each time a breakthrough is invented, the next day a new breakthrough will come in a slightly different way but has its own advantages.

The choice will fall in the hands of the people controlling the company, how they want to develop the product, by using which method, and how they will take advantage of each method. That is the thing that truly counts.


  1. https://www. innocentive. com/about-us/open-innovation-marketplace
  2. http://www. ninesigma. com/open-innovation-resources/what-is-oi

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Advantage and Disadvantage of Open Innovation Versus Stage. (2016, Oct 02). Retrieved from