Open Innovation: Pirelli's strategy

In the fast-paced global economy of today, innovation is among the main pillars of competitiveness and resilience. Open Innovation (OI), a notion developed by Henry Chesbrough that diverges from classical closed innovation models, supports the importance of incorporating external knowledge, cross-industry collaboration, and collaborative environments. This thesis deals with Open Innovation in the manufacturing sector and it particularly focuses on Pirelli, global leader in tire industry. The research is intended to conduct an analysis of Pirelli’s Open Innovation strategy, developing both the actors involved in their innovation ecosystem, the methods used and the policies of management of intellectual property of the company. The study is the result of a literature review and a case study based on semi-structured interviews with managers of Pirelli’s R&D departments and provides some insights into the implementation of Open Innovation at Pirelli focusing on best practices, challenges and an outlook on the future. Analysis shows that Pirelli operates in a hybrid system, maintaining centralized governance complemented by decentralized execution. The company primarily relies on inbound Open Innovation, leveraging partnerships with universities and suppliers, while outbound innovation continues to play a secondary role. Intellectual property protection is predominantly defensive, with patents playing a crucial role in safeguarding competitive advantages. Despite the successful implementation of Open Innovation, challenges persist, including resource constraints, legal complexities, and difficulties in scaling up innovations. The present study provides insights for Pirelli to refine its approach to Open Innovation, including diversifying the scope of partnerships, strengthening outbound innovation efforts, and optimizing internal procedures for rapid innovation implementation. If Pirelli takes a step forward in these aspects, it can even perfect its reputation for being a technological innovator and ecological innovator in the tire sector. This study is of theoretical and practical significance by offering a detailed examination of Open Innovation in a mature and high-tech manufacturing firm that can serve as a benchmark for enterprises to develop or upgrade their Open Innovation approaches.