The next step deals with the use of project output. Ideas, solutions and outputs are not available to the organisation if there is no rule regarding property rights.
For this reason, usage rules need to be set out and steps for implementation and responsibilities need to be defined. Creative providers of ideas want to see their ideas implemented and will want to be involved in their utilisation, depending on their interests.
The intended necessary rights ownership or basic rights (exclusive/non-exclusive, which markets, etc.) should be stipulated right at the outset.
Depending on the type of challenge of the innovation initiative, agreed and appropriate remunerations will be appropriate, such as, for example, cash awards, non-cash awards, internships, presentation of the winner’s name or an invitation to develop the idea or cooperation in the organisation.
Where appropriate, there will be a need to conclude a licence agreement and specify the rights that will be granted (transfer of rights).
If the new solution involves complex technical solutions that require further enhancement, it is worth considering risk-sharing models regarding the provision of licence models depending on success (milestone payments, running royalties). (For details on licence agreements, see IPAG)
A compensation model often used in the field of design and architecture, where it is accepted as being appropriate, can also be of potential benefit in other areas. This provides for a combination of compensation and involvement in implementation:
The best project from a number of submissions is approved for implementation (commissioned) and the rights for this are transferred in full to the organisation being commissioned.
Appropriate compensation is awarded for the projects in second and third place, which must also assign rights.
For all other submissions, the rights remain exclusively with the parties making the submission or revert to these parties.
Further reading and sources
Vanhaverbeke, W. (2017): “Managing Open Innovation in SME”, Cambridge University Press, 2017
de Beer, J., McCarthy, I., Soliman, A., Treen, E. (2017): “Click here to agree: Managing intellectual property when crowdsourcing solutions”, Business Horizons, Volume 60, Issue 2, March–April 2017, Pages 207-217
Seja, c., Narten, J. (2017): “Creative Communities, Ein Erfolgsinstrument für Innovationen und Kundenbindung, Springer Gabler, Springer Fachmedien Wiesbaden GmbH 2017
Gassmann, Oliver (2013): “Crowdsourcing. Innovationsmanagement mit Schwarmintelligenz. Interaktiv Ideen finden, kollektives Wissen effektiv nutzen. Mit Fallbeispielen und Checklisten.”, Carl Hanser Verlag München.