The Love-In

THE ECONOMIST—Berkeley seems like a fitting place to find the godfather of the open-innovation movement basking in glory. The Californian village was, after all, at the very heart of the anti-establishment movement of the 1960s and has spawned plenty of radical thinkers. One of them, Henry Chesbrough, a business professor at the University of California at Berkeley, observes with a smile that “this is the 40th anniversary of the Summer of Love.”

Mr Chesbrough’s two books “Open Innovation” and “Open Business Models” have popularised the notion of looking for bright ideas outside of an organisation. As the concept of open innovation has become ever more fashionable, the corporate R&D lab has become decreasingly relevant. Most ideas don’t come from there.

To see why travel to Cincinnati, Ohio—which is about as far removed culturally from Berkeley as one can get in America. The conservative mid-western city is home to P&G, historically one of the most traditional firms in America. For decades, the company that brought the world Ivory soap, Crest toothpaste and Ariel detergent had a closed innovation process, centred around its own secretive R&D operations. Read article.