Open innovation within loughview timber: How knowledge transfer is opening doors to new markets

Open Innovation presents an opportunity for small to medium enterprises (SMEs) to gain a competitive advantage over their peers in their respective markets. Research has shown the positive influence that open innovation can have on large firms and high-tech SMEs, allowing them to innovate more efficiently than their counterparts. This study aims to determine the effectiveness of adopting an open innovation model in the context of SMEs. In doing so, Loughview Timber; a small manufacturer and supplier of timber external door sets, fire rated doors, staircases, windows, based outside of Gilford in Northern Ireland, whom are currently partnering with the University of Limerick in a knowledge transfer project on product development, is used as a case study. Using existing processes and procedures as a base, the study aims to analyse the need for open innovation within Loughview Timber; thus, analysing the effect open innovation would have on the organisation whilst providing short, medium and long term recommendations for the company’s innovation practices. Based on a review of existing literature surrounding open innovation models, a questionnaire was developed and administered to respondents familiar with Loughview Timber’s open innovation project. In conjunction with this questionnaire, a review of Loughview Timber’s internal documents and market reports was also completed, to provide an organisation context. Analysis of these results indicated that open innovation was the most effective model to use, to support Loughview Timber’s product development activities. Based on these results, it is recommended that Loughview Timber continue to exploit the benefits of knowledge transfer available in the form of InterTradeIreland’s FUSION project, while also looking for further opportunities to partner with other third level educational institutions. Further research is required across a wider range of SMEs to more accurately determine the effectiveness of open innovation on supporting SME’s product development activities.