How Open Innovation is Impacting The Tech Ecosystem


How Open Innovation is Impacting The Tech Ecosystem

Michael Marx, Vice President of Innovation, UST Innovation Israel

Major corporations around the world are adopting "open innovation," a pragmatic innovation process. Simply put, open innovation is an innovation model that promotes collaboration outside the organization.

Michael Marx, Vice President of Innovation, UST Innovation Israel

For agile companies, acknowledging that there are many professionals with greater knowledge outside their organization is very important and is key to unlocking new opportunities. Many startups are already collaborating this way. In addition, larger companies are beginning to understand the productive and financial benefits of moving towards a scalable collaboration framework instead of sourcing everything in-house.

Open Innovation in Healthcare

In healthcare, for instance, scientists, clinicians, policymakers, and business executives are pushing for new ways of accelerating healthcare delivery and biotech breakthroughs using open-innovation models. As a result, innovation has become the "tool" of choice to bridge interactions between healthcare and other fields such as big data, advanced research, and mobile development.

While this approach can open doors for entrepreneurs and innovators, it is not without its challenges. Many verticals are still running into issues, from intellectual property rights to regulatory compliance and the limited belief that only experts in a specific field can solve problems in a particular field. However, open innovation is ultimately enabling organizations to diversify their opportunities for growth and business advancement. This is increasing in influence over time as all organizations within the ecosystem can contribute their expertise and industry experience with one another and accelerate collective goals.

Fintech leading the way in Open Innovation

We see the banking industry caught between an uncertain world economy and the growing cost of new technology. In this sector, open innovation is already transforming banking by strengthening the link between banks and Fintech solutions. Banks seek to provide their customers with advanced services in a highly competitive environment. This shift can help the industry fuel innovation through partnerships and collaborations with FinTech startups. This is no small feat for such a traditional and highly regulated industry, yet the benefits quickly outweigh the challenges.

For example, Fintech Galaxy, a UAE-based cross-border fintech marketplace and innovation crowdsourcing platform has launched a cloud-based open innovation platform, FinX22, that aims at driving collaboration, fueling innovation, and facilitating integration between financial institutions and fintech companies. One of the foundations of FinX22 is a platform that provides an Open Banking API sandbox. This provides an opportunity for fintech companies to advance and develop specific fintech solutions. In addition, this functions as a framework for virtual incubation acceleration programs, among other possibilities. Find out more about this


The Many Benefits

For almost any tech-based company, open innovation will undoubtedly lead to better access to talent, better access to the right infrastructures. It will tap into the power of co-creation. Companies available to and active with open innovation can create new revenue streams, reduce costs, risks and timescales and increase their competitive advantage.

UST Innovation Israel is focused on pushing for more open innovation in various sectors and is committed to nurturing Israeli startups and providing them with reach across the globe. As open innovation impacts more industries and enterprises over time, UST Innovation continues to uphold this innovation process and encourages the collaboration between influential startups and global organizations. To learn more about growth opportunities with open innovation, contact UST Innovation Israel.