In 1998, mobile companies such as Motorola have developed high tech models with built-in FM radio and infrared connectivity. Ten years later, many phones have options for video calling, digital camera, wireless networking, responding to emails. After five more years later, Skype company has developed a new platform which allow users to make free phone calls between any two computers.
Telecom industry has used long-established R&D models which main purpose was to keep the whole process of innovating new products and services in secret so no competition will be created. However, years later the concept of open innovation was developed by Chesbrough (2006) and was described as “valuable ideas can come from inside or outside the company as well”
The idea of Open Innovation is to involve any shareholders who have interests of the product like partners, suppliers, customers and society.
The key driver for innovation in telecommunication industry is to improve the economy by attracting potential companies to invest in the country. The accessibility, quality and price of communication services are the most important points to consider when choosing a new place for establish a business.
An example of open innovation models are presented by the Norway company Telenor. One of them is Content Provider Access (CPA) which provides connections to the customers and giving them own content services such as short message services and multi media services. CPA allows users to send and receive text messages, audio and picture content messages and short videos. The other open innovation model is called Playground which creates virtual platform for customers to exchange information.
Government is trying to protect innovation process by creating Intellectual Proprety Rights systems which are ‘’innovative software and consulting firm, specializing in Intellectual Property with a strong focus in patents and utility models’’ (REFERENCE). An example of government contribution to innovation could be the international collaboration between UK’s Department for Business, Innovation and Skills and the UK Foreign and Commonwealth Office which funded UK Science and Innovation Network (SIN). – Russia.(REFERENCIQ) The purpose of this relationship is to motivate these two countries to work together so they can modernise their innovation infrastructure. https://www.gov.uk/government/priority/uk-science-and-innovation-network-sin-russia
According to National Audit Office analysis, UK government has spent £1,051m in telecommunications for 2011 and £682m in R&D services, which is 299% more than the investments from 2007 to 2011. http://www.nao.org.uk/wp-content/uploads/2013/07/Research-and-development-funding-for-science-and-technology-in-the-UK1.pdf
Even though the UK R&D spending falls for...