In 1998, a strategic analysis made by the pharmaceutical company Eli Lily showed that their internal attempts of generating innovation were hampered by the limited diversity of approaches. Eli Lily created an online broker company InnoCentive which helps companies with problems they need solved by accessing a global pool of talent with a range of skills. Scientists, engineers and other professionals are thus able to provide solutions to corporate lab’s R&D problems via the online broker.

Seekers (companies seeking solutions) submit problems they are not able to solve in their internal R&D labs to the online InnoCentive Marketplace – doing a “broadcasting search”. In the marketplace, there are problems looking for solutions, as well as solutions that might be looking for problems. The problems are mainly technical ones, requiring skills within engineering, life science, maths, chemistry and computer science. On average, 240 individuals glance at a given broadcasted problem – a significantly larger number of people than companies can afford in an internal development process. On average, 10 individuals offer answers, and 30% of the problems are solved.

The open innovation created through InnoCentive gives companies access to a global and diverse pool of knowledge. Problems are considered through different perspectives by professionals that might not usually participate in solving those particular types of problems, and whose skills might not be found within the company broadcasting the problem.

Today 160,000 individuals from 175 countries participate in creating solutions via the InnoCentive marketplace. Other transnationals such as Procter & Gamble are today using InnoCentive to solve R&D challenges and to obtain diversity in the solutions offered.

Source: Associate Professor, Lars Bo Jeppesen (2009)

For more details on this case, contact FORA at FORA@newnatureofinnovation.org.