New report from McKinsey [free] on open innovation, or co-creation of products and services. The usual examples are offerred, from Linux, LEGO, Missha, and ATLAS (Scientific).

next step in open innovation – The McKinsey Quarterly – next step in open innovation – Information Technology – Networking

# Cocreating products and services with customers, however, is uncertain territory fraught with challenges and questions—for instance, who owns the resulting intellectual property? Nonetheless, smart companies are now beginning to encourage their customers to help them develop the products and services consumers really want.

There is discussion of governance, and some skepticism that the model will transfer from software to general innovation. Much of the content is a straight lift from “The Cathedral and the Bazaar” but its a good read and offers a summary of many of the issues.