Increase the pool of knowledge

Reduce reliance on limited internal knowledge

Can reduce the cost and uncertainty associated with internal R&D, and increase depth and breadth of R&D

Reduce costs of internal R&D, more resources on external search strategies and relationships

Greater emphasis on capturing First-mover advantages depend on rather than creating value

Better balance of resources to search and identify ideas, rather than generate

Value of IP very sensitive to com- plementary capabilities such as brand, sales network, production, logistics, and complementary products and services

How to share or transfer such knowledge, especially tacit and

systemic Less likely to lead to distinctive capa- bilities and more difficult to differentiate

Need sufficient R&D capability in order to identify, evaluate and adapt external R&D

technology and market context Developing a business model demands

Generating ideas is only a small part of the innovation process

Most ideas unproven or no value, so cost of evaluation and development high Conflicts of commercial interest or strategic direction