Business Quote by Henry Chesbrough
“In a world of widely distributed knowledge, companies cannot afford to rely entirely on their own research, but should instead buy or license processes or inventions (i.e. patents) from other companies. In addition, internal inventions not being used in a firm’s business should be taken outside the company.”
About This Quote
Source Book: Open Innovation: The New Imperative for Creating and Profiting from Technology by Henry Chesbrough, 2003
Companies should supplement internal R&D by acquiring external patents and licensing technology, and spin out unused inventions.
In simple terms: Leverage external knowledge and spin out idle inventions.
Key Takeaway
Seek external patents and spin out unused ideas.
Themes
innovation
collaboration
knowledge sharing
Mood
strategic
pragmatic
Type
business
advisory
When to use this quote
- R&D departments
- startup accelerators
- corporate spin‑outs
- technology marketplaces
Key Concepts
open innovation
technology transfer
strategic licensing
Questions to Reflect On
- How do you evaluate the strategic fit of an external patent?
- What processes ensure spin‑outs succeed?
A Different Perspective
Relying on external patents may expose firms to legal risk and integration challenges.
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