These two examples both show how the companies employ co-creative collaborative model to obtain external innovation capability. These are found to offer a place to open their doors and integrate external knowledge. GE’s innovation collaboration and P&G has kept long-lasting partnerships with other smaller groups. Websites for absorbing innovative ideas indicate that they enjoy sharing resources to improve their capability of implementing their innovative projects. Therefore, large knowledge pool decrease costs linked with moving a big portfolio of innovations down the pipeline are the main benefit. The joint partnerships aid the people to obtain higher volume and all kinds of structure of resources to deal with shorter innovation cycles. These are found to impact the internal resources shortage for the company and they share companies’ innovative projects risks with their partners (Gassmann and Enkel, 2004).
To conclude, large enterprises will take advantage of difference ways to develop their innovation capability. This is done in order to achieve a leading position in the market. This was done to achieve the companies’ innovation capability. These two ways both make their companies more innovative and competitive. However, some relevant risks are faced within the organization. Intellectual property protection has been regarded as one of the methods to maximize their values of innovative products or service. Copyright, patents and trade-secrets can be used to defend in the content. The main focus on what role patents play was also discussed. The leading position of Philips in patents application shows that its high-level R&D, expertise and innovation ideas lead to the growth of the company. It not only brings a lot of revenue for Philips by licensing its patents to other partners but also absorbs more business opportunities. However, the case of Nintendo sued by Philips owing to patents infringement show that patents application will lead to the possibility of reducing its technology’s secrecy, patents protection will be time-consuming and become a puzzle for companies. On the other hand, open innovation has become a common way for large companies to achieve cost reduction, know acquisition, and risk sharing and resources availability. The companies need to ensure that they have a control over the operations to strike a balance.