Innocentive Case

1) Why would firms use InnoCentive’s service to solve scientific and technical problems?

A) Seekers would use Innocentive’s services since they haven’t been able to solve the problem in their own firm. The problem is defined and handled based on local expertise with limited tools that may not be the effective solution. It is looked over by in-house scientists leading to local search where as IC enables external search.

Problems no more remain dormant if not handled by local group as they are solved by outside diverse scientists. Firms increase their R&D capacity while reducing the risk and cost of research failure.

Use of such services may lead to potential innovations. Firms get to choose from the pool of solutions as the challenge is broadcasted on IC’s website. And this pool of Solvers is from varied backgrounds, countries, personal and professional experiences. 40% are PhD’s.

It is cost effective since seekers pay for solution and not for failure. They also decrease the uncertainty in the initial investments.

2) What is the motivation for Solvers to participate in Innocentive?

A) Value to solvers is many fold. Monetary advantage. Cash prize for the solution if accepted by the seekers.

Intrinsic motivation- Solvers are motivated by their curiosity, self pleasure, need to solve the problem to find the solution in novel way by applying their expertise knowledge.

Not all solutions required validation some seekers except paper based proposals to the challenges. Solvers were more than willing to take the initiative as there was no risk in proposing solutions.

Solvers had liberty to work independently which allowed them to think out of box. Solvers selected the challenges from the IC pool and were not enforced by any entity to find the solution for any particular problem.

Ease of joining the solver pool. Free signing up , no pre-screening, anonymity, don’t have to quit day jobs to become solver are functions of open innovation.

3) What are the...