---
title: "Meaning & Key Takeaway of: In a world of widely distributed…"
description: "\"In a world of widely distributed knowledge, companies cannot afford to rely entirely on their own research, but should instead buy or license processes..."
image: "https://sms4smile.com/quotes/i/c32/henry-chesbrough-68040_business_in-a-world-of-widely-distributed-knowled_1090890.jpg"
---

#  In a world of widely distributed knowledge, companies…

![“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…” quote by Henry Chesbrough](https://sms4smile.com/quotes/i/c32/henry-chesbrough-68040_business_in-a-world-of-widely-distributed-knowled_1090890.jpg)   [Download](https://sms4smile.com/quotes/i/c32/henry-chesbrough-68040_business_in-a-world-of-widely-distributed-knowled_1090890.jpg) [Open image](https://sms4smile.com/quotes/i/c32/henry-chesbrough-68040_business_in-a-world-of-widely-distributed-knowled_1090890.jpg)

> “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.”

[Henry Chesbrough](https://sms4smile.com/quotes/author/henry-chesbrough/)

## About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

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.

★ ★ ★ ★ ★   No ratings yet

[Business](https://sms4smile.com/quotes/about/business/) [Company](https://sms4smile.com/quotes/about/company/) [Firm](https://sms4smile.com/quotes/about/firm/) [Innovation](https://sms4smile.com/quotes/about/innovation/) [Internal Inventions](https://sms4smile.com/quotes/about/internal-inventions-2818956/) [Internals](https://sms4smile.com/quotes/about/internals/) [Invention](https://sms4smile.com/quotes/about/invention/) [Knowledge Companies](https://sms4smile.com/quotes/about/knowledge-companies-2818958/) [License](https://sms4smile.com/quotes/about/license/) [Patents](https://sms4smile.com/quotes/about/patents/) [Patents Companies](https://sms4smile.com/quotes/about/patents-companies-2818957/) [Process](https://sms4smile.com/quotes/about/process/) [Rely](https://sms4smile.com/quotes/about/rely/) [Research](https://sms4smile.com/quotes/about/research/) [Research Instead](https://sms4smile.com/quotes/about/research-instead-2818959/) [Should](https://sms4smile.com/quotes/about/should/) [Taken](https://sms4smile.com/quotes/about/taken/) [Used](https://sms4smile.com/quotes/about/used/) [World](https://sms4smile.com/quotes/about/world/)

## Related quotes

> [Very few entrepreneurs start their business on the back of market research. Instead, they have tremendous zeitgeist, honed by paying attention to where they…](https://sms4smile.com/quotes/margaret-heffernan/very-few-entrepreneurs-start-their-business-on-the-back-of-market/)

[Margaret Heffernan](https://sms4smile.com/quotes/author/margaret-heffernan/)

> [By that time I was hooked on a career in academic research instead of one in the pharmaceutical industry that I had originally considered…](https://sms4smile.com/quotes/paul-berg/by-that-time-i-was-hooked-on-a-career-in-academic-research-instead-of/)

[Paul Berg](https://sms4smile.com/quotes/author/paul-berg/)

> [You should be innovating so fast that you're invalidating your prior patents](https://sms4smile.com/quotes/elon-musk/you-should-be-innovating-so-fast-that-you-re-invalidating-your-prior/)

[Elon Musk](https://sms4smile.com/quotes/author/elon-musk/)

> [“Working a Patent is not as easy as it sounds”](https://sms4smile.com/quotes/kalyan-c-kankanala/working-a-patent-is-not-as-easy-as-it-sounds/)

[Kalyan C. Kankanala](https://sms4smile.com/quotes/author/kalyan-c-kankanala/)

> [I've always hate child stars, starting from way back when, when I was a child. The first child star I saw was Shirley Temple.…](https://sms4smile.com/quotes/joan-rivers/i-ve-always-hate-child-stars-starting-from-way-back-when-when-i-was-a/)

[Joan Rivers](https://sms4smile.com/quotes/author/joan-rivers/)

> [“The inventive step requirement makes a lawyer out of an inventor”](https://sms4smile.com/quotes/kalyan-c-kankanala/the-inventive-step-requirement-makes-a-lawyer-out-of-an-inventor/)

[Kalyan C. Kankanala](https://sms4smile.com/quotes/author/kalyan-c-kankanala/)

> [Except in very narrow cases, where there's breakthrough science that needs patent production, worrying about competitors is a waste of time. If you can't…](https://sms4smile.com/quotes/eric-ries/except-in-very-narrow-cases-where-there-s-breakthrough-science-that/)

[Eric Ries](https://sms4smile.com/quotes/author/eric-ries/)

> [We hear, "Oh, we need to patent GMOs and develop new strains and new chemicals because Nature can't provide what we need." I have…](https://sms4smile.com/quotes/frances-moore-lapp/we-hear-oh-we-need-to-patent-gmos-and-develop-new-strains-and-new/)

[Frances Moore Lappé](https://sms4smile.com/quotes/author/frances-moore-lapp/)

> [An industry begins with the customer and his or her needs, not with a patent, a raw material, or a selling skill](https://sms4smile.com/quotes/theodore-levitt/an-industry-begins-with-the-customer-and-his-or-her-needs-not-with-a/)

[Theodore Levitt](https://sms4smile.com/quotes/author/theodore-levitt/)

> [There are certain zip codes that generate a disproportionate share of patents, of startups, of wealth, of jobs. And it's really important if other…](https://sms4smile.com/quotes/juan-enriquez/there-are-certain-zip-codes-that-generate-a-disproportionate-share-of/)

[Juan Enriquez](https://sms4smile.com/quotes/author/juan-enriquez/)

> [... semantics ... is a sober and modest discipline which has no pretensions of being a universal patent-medicine for all the ills and diseases…](https://sms4smile.com/quotes/alfred-tarski/semantics-is-a-sober-and-modest-discipline-which-has-no-pretensions/)

[Alfred Tarski](https://sms4smile.com/quotes/author/alfred-tarski/)

> [The idea that I can be presented with a problem, set out to logically solve it with the tools at hand, and wind up…](https://sms4smile.com/quotes/john-carmack/the-idea-that-i-can-be-presented-with-a-problem-set-out-to-logically/)

[John Carmack](https://sms4smile.com/quotes/author/john-carmack/)

> [There is a patent office at the seat of government of the universe, whose managers are as much interested in the dispersion of seeds…](https://sms4smile.com/quotes/henry-david-thoreau/there-is-a-patent-office-at-the-seat-of-government-of-the-universe/)

[Henry David Thoreau](https://sms4smile.com/quotes/author/henry-david-thoreau/)

> [The "health, education, and welfare" section of government is another boondoggle. First we manufacture indigent and superfluous people by legal monopolies in land, money…](https://sms4smile.com/quotes/laurance-labadie/the-health-education-and-welfare-section-of-government-is-another/)

[Laurance Labadie](https://sms4smile.com/quotes/author/laurance-labadie/)

> [ Next came the Patent laws. These began in England in 1624; and, in this country, with the adoption of our constitution. Before then \[these?\],… ](https://sms4smile.com/quotes/abraham-lincoln/next-came-the-patent-laws-these-began-in-england-in-1624-and-in-this/)

[Abraham Lincoln](https://sms4smile.com/quotes/author/abraham-lincoln/)

## More by Henry Chesbrough

> [Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external…](https://sms4smile.com/quotes/henry-chesbrough/open-innovation-is-a-paradigm-that-assumes-that-firms-can-and-should/)

[Henry Chesbrough](https://sms4smile.com/quotes/author/henry-chesbrough/)

> [Most innovations fail. And companies that don’t innovate die.](https://sms4smile.com/quotes/henry-chesbrough/most-innovations-fail-and-companies-that-don-t-innovate-die/)

[Henry Chesbrough](https://sms4smile.com/quotes/author/henry-chesbrough/)

> [No one has a monopoly on knowledge the way that, say, IBM had in the 1960s in computing, or that Bell Labs had through…](https://sms4smile.com/quotes/henry-chesbrough/no-one-has-a-monopoly-on-knowledge-the-way-that-say-ibm-had-in-the/)

[Henry Chesbrough](https://sms4smile.com/quotes/author/henry-chesbrough/)

[Explore all 4 Henry Chesbrough quotes ](https://sms4smile.com/quotes/author/henry-chesbrough/)

## More Business quotes

> [Companies with cultures that celebrate diverse opinions and encourage the exchange of ideas have an advantage when solving difficult problems. A company that doesn't…](https://sms4smile.com/quotes/doug-mcmillon/companies-with-cultures-that-celebrate-diverse-opinions-and-encourage/)

[Doug McMillon](https://sms4smile.com/quotes/author/doug-mcmillon/)

> [You can laugh at me, but I understand show business.](https://sms4smile.com/quotes/ksenia-sobchak/you-can-laugh-at-me-but-i-understand-show-business/)

[Ksenia Sobchak](https://sms4smile.com/quotes/author/ksenia-sobchak/)

> [“Start a business, not a startup”](https://sms4smile.com/quotes/anonymous/start-a-business-not-a-startup/)

[Anonymous](https://sms4smile.com/quotes/author/anonymous/)

> [“Take some books and read; that’s an immense help; and books are always good company if you have the right sort.”](https://sms4smile.com/quotes/louisa-may-alcott/take-some-books-and-read-that-s-an-immense-help-and-books-are-always/)

[Louisa May Alcott](https://sms4smile.com/quotes/author/louisa-may-alcott/)

> [I'm a business first and foremost so whatever my business is, it's separate from my personal. It's like whatever I do business wise, it's…](https://sms4smile.com/quotes/snoop-dogg/i-m-a-business-first-and-foremost-so-whatever-my-business-is-it-s/)

[Snoop Dogg](https://sms4smile.com/quotes/author/snoop-dogg/)

> [Many early-stage entrepreneurs make one simple mistake: Describing this 'big picture' in vague concepts and words.](https://sms4smile.com/quotes/sunil-nagaraj/many-early-stage-entrepreneurs-make-one-simple-mistake-describing/)

[Sunil Nagaraj](https://sms4smile.com/quotes/author/sunil-nagaraj/)

> [Nobody has a crystal ball, and part of evolving a business plan is to say, 'I might have said we're going left, but I…](https://sms4smile.com/quotes/ryan-kavanaugh/nobody-has-a-crystal-ball-and-part-of-evolving-a-business-plan-is-to/)

[Ryan Kavanaugh](https://sms4smile.com/quotes/author/ryan-kavanaugh/)

> [I think a business guy is different from an artist. They walk different paths. Artists create the best outputs when they're having fun. And…](https://sms4smile.com/quotes/g-dragon/i-think-a-business-guy-is-different-from-an-artist-they-walk/)

[G-Dragon](https://sms4smile.com/quotes/author/g-dragon/)

> [ “\[S\]ometimes, when you are a food person, the possible irrelevance of what you are doing doesn’t cross your mind until it’s too late. (Once,… ](https://sms4smile.com/quotes/nora-ephron/s-ometimes-when-you-are-a-food-person-the-possible-irrelevance-of/)

[Nora Ephron](https://sms4smile.com/quotes/author/nora-ephron/)

> [If you have a different mindset, you will have a different outcome: if you make different choices from your peers, your life will then…](https://sms4smile.com/quotes/jack-ma/if-you-have-a-different-mindset-you-will-have-a-different-outcome-if/)

[Jack Ma](https://sms4smile.com/quotes/author/jack-ma/)

> [“Some say the Earth is angry Because he wants no company; I say the Earth is angry Because he lives alone.”](https://sms4smile.com/quotes/n-k-jemisin/some-say-the-earth-is-angry-because-he-wants-no-company-i-say-the/)

[N.K. Jemisin](https://sms4smile.com/quotes/author/n-k-jemisin/)

> [ If the State does not acquire supremacy over \[vast private\] enterprises, it becomes their puppet, and they become the real State. ](https://sms4smile.com/quotes/bertrand-russell/if-the-state-does-not-acquire-supremacy-over-vast-private-enterprises/)

[Bertrand Russell](https://sms4smile.com/quotes/author/bertrand-russell/)

> [It's not just that families can't buy a home or start a business without some savings tucked away.](https://sms4smile.com/quotes/jim-cooper/it-s-not-just-that-families-can-t-buy-a-home-or-start-a-business/)

[Jim Cooper](https://sms4smile.com/quotes/author/jim-cooper/)

> [I'm not into business at all.](https://sms4smile.com/quotes/freddie-mercury/i-m-not-into-business-at-all/)

[Freddie Mercury](https://sms4smile.com/quotes/author/freddie-mercury/)

> [I've long believed one of the mainsprings of our own liberty has been the widespread ownership of property among our people and the expectation…](https://sms4smile.com/quotes/ronald-reagan/i-ve-long-believed-one-of-the-mainsprings-of-our-own-liberty-has-been/)

[Ronald Reagan](https://sms4smile.com/quotes/author/ronald-reagan/)

[Browse all 39,016 Business quotes ](https://sms4smile.com/quotes/about/business/)

```json
{
    "@context": "https://schema.org",
    "@graph": [
        {
            "@type": "Quotation",
            "text": "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.",
            "creator": {
                "@type": "Person",
                "name": "Henry Chesbrough"
            },
            "isPartOf": {
                "@id": "https://sms4smile.com/quotes/#website"
            },
            "url": "https://sms4smile.com/quotes/henry-chesbrough/in-a-world-of-widely-distributed-knowledge-companies-cannot-afford-to/",
            "about": {
                "@type": "Thing",
                "name": "Business"
            },
            "@id": "https://sms4smile.com/quotes/henry-chesbrough/in-a-world-of-widely-distributed-knowledge-companies-cannot-afford-to/#quotation",
            "image": {
                "@type": "ImageObject",
                "@id": "https://sms4smile.com/quotes/i/c32/henry-chesbrough-68040_business_in-a-world-of-widely-distributed-knowled_1090890.jpg",
                "contentUrl": "https://sms4smile.com/quotes/i/c32/henry-chesbrough-68040_business_in-a-world-of-widely-distributed-knowled_1090890.jpg",
                "url": "https://sms4smile.com/quotes/i/c32/henry-chesbrough-68040_business_in-a-world-of-widely-distributed-knowled_1090890.jpg",
                "width": 1080,
                "height": 1080,
                "caption": "“In a world of widely distributed knowledge, companies cannot afford to rely entirely on their own research…” — Henry Chesbrough",
                "creditText": "SMS4Smile Quotes",
                "creator": {
                    "@id": "https://sms4smile.com/quotes/#organization"
                }
            }
        },
        {
            "@type": "BreadcrumbList",
            "itemListElement": [
                {
                    "@type": "ListItem",
                    "position": 1,
                    "name": "Home",
                    "item": "https://sms4smile.com/"
                },
                {
                    "@type": "ListItem",
                    "position": 2,
                    "name": "Quotes",
                    "item": "https://sms4smile.com/quotes/"
                },
                {
                    "@type": "ListItem",
                    "position": 3,
                    "name": "Henry Chesbrough",
                    "item": "https://sms4smile.com/quotes/author/henry-chesbrough/"
                },
                {
                    "@type": "ListItem",
                    "position": 4,
                    "name": "In a world of widely distributed...",
                    "item": "https://sms4smile.com/quotes/henry-chesbrough/in-a-world-of-widely-distributed-knowledge-companies-cannot-afford-to/"
                }
            ],
            "@id": "https://sms4smile.com/quotes/henry-chesbrough/in-a-world-of-widely-distributed-knowledge-companies-cannot-afford-to/#breadcrumb"
        },
        {
            "@type": "WebSite",
            "@id": "https://sms4smile.com/quotes/#website",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "publisher": {
                "@id": "https://sms4smile.com/quotes/#organization"
            }
        },
        {
            "@type": "Organization",
            "@id": "https://sms4smile.com/quotes/#organization",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "logo": {
                "@type": "ImageObject",
                "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png",
                "width": 512,
                "height": 512
            }
        }
    ]
}
```