The tension between traditional innovation strategies and openness: Lindt’s controlled open innovation approach

Abstract: In this chapter, an exploration is presented of the tension generated in companies following a very traditional approach to managing R&D and innovation (mostly based on internal resources, competences and activities) even when globalization and the rapid pace of innovation driven by market forces, leads them to involve external actors in their R&D processes. The problem this tension generates, namely balancing the need for openness with the strategic relevance of internal R&D activities and core capabilities, which the company wishes to remain internal and private, is one faced by leading chocolate manufacturer, Lindt. Evidence from this case study illustrates how even ‘closed’ companies can adopt a ‘controlled open approach’ to innovation so as to exploit its potential benefits without radically modifying their business model.