Open innovation management and the allocation of technological innovation resources: a case in China

In this paper, we use the open innovation paradigm brought forward by Henry Chesbrough for reference. Open innovation can speed innovation, reduce the uncertainty of technology and market. The paper does some research on the mechanism of open innovation and the mechanism of integrating internal and external innovation resources in enterprises. The paper finds that internal R&D isn't the overall technological innovation capabilities, but the fundamental factor under open environment. Integrating internal and external innovation resources are the key points for open innovation. It will be more reasonable that we substitute total innovation inputs for R&D inputs to measure the level of technological innovation. Open and integrated innovations are the direction for Chinese companies to implement innovations. The paper also syncretizes the successful open innovation practice of Shanghai Baosteel Corporation to expatiate.