outbound open innovation

Outbound open innovation, a concept developed by Henry Chesbrough, is the 'inside-out' process where a firm strategically commercializes its internal R&D, intellectual property (IP), and underutilized technologies to the external market. Instead of keeping all innovations in-house, companies proactively find external pathways—such as licensing, spin-offs, or joint ventures—to generate value from non-core assets. In risk management, this strategy is closely tied to IP and trade secret protection. Its implementation aligns with the principles of value realization in ISO 56002:2019 (Innovation Management — Guidance). Furthermore, the transfer process must be secured by information security controls specified in ISO/IEC 27001:2022 and comply with relevant trade secret laws to prevent leakage. It is the counterpart to inbound open innovation, which focuses on acquiring external knowledge.

Applying outbound open innovation in ERM involves a structured, risk-controlled process. Step 1: **IP Asset Inventory and Risk Assessment**. A firm must systematically identify and classify all internal IP, especially idle or non-core assets. Based on ISO 56002 guidelines, it assesses their commercial potential and associated leakage risks. Step 2: **Establish Protection and Compliance Mechanisms**. Before any transfer, robust security controls based on ISO/IEC 27001:2022 Annex A.5.12 (Intellectual property rights) must be implemented. All legal agreements, such as NDAs and licensing contracts, must clearly define the scope of use and confidentiality obligations. Step 3: **Partner Due Diligence and Monitoring**. Conduct thorough due diligence on potential partners to verify their IP management capabilities. Post-agreement, establish regular audits to monitor compliance. For example, a Taiwanese fabless semiconductor company successfully licensed its mature process IP, increasing licensing revenue by over 15% annually while mitigating the risk of asset depreciation.

Taiwanese enterprises face three key challenges. **1. Inadequate Trade Secret Management:** Many SMEs lack a systematic framework to identify and protect trade secrets, making them vulnerable to IP leakage during collaborations. The solution is to implement a Trade Secret Management System (TSMS) aligned with local laws, with the priority action being a comprehensive trade secret inventory. **2. Difficulty in IP Valuation:** Companies often struggle to accurately assess the market value of their IP, leading to undervalued deals. The solution involves establishing a cross-functional IP committee and engaging professional valuation services. **3. Lack of International Licensing Expertise:** Navigating complex cross-border legal and tax issues is a major hurdle. The mitigation strategy is to partner with experienced legal and consulting firms specializing in international technology transfer and to start with lower-risk pilot projects to build internal capabilities.

Winners Consulting specializes in outbound open innovation for Taiwan enterprises, delivering compliant management systems within 90 days. Free consultation: https://winners.com.tw/contact