A Case Study On Open Innovation Of Hunan Sokan New Materials Co.,Ltd

As China undergoes economy transition to a high-quality development stage,many small-and-medium-sized enterprises(SMEs)have begun to abandon the development path of competing for technology imitation and price-war,and gradually shift to focus on improving their independent innovation capabilities.The open innovation model proposed by Professor Chesbrough provides a new solution for SMEs to leverage internal and external innovation resources and further improve such efficiency.With the rapid development of consumer electronics,the industry of new functional coating materials is also advancing all the way.Through an open innovation model,Sokan New Materials cooperates with many external innovation sources to provide a constant stream of information for the company internally,making its products recognized by first-tier brands and becoming the "first share" of UV coatings on the market.In this paper,we take Sokan New Materials as the research object,and give a detailed description and comprehensive analysis of the company’s open innovation history.First,based on the internal and external environment of Sokan New Materials,this article defines and sorts out the related concepts and theories of open innovation,summarizes relevant domestic and foreign documents,and proposes the research content and methods of this article.Secondly,based on a large amount of data analysis,industry research,internal company information surveys and interviews,this paper reviews the whole process of open innovation in the case company from the initial stage,the mature stage to the full-scale development stage,and presents the innovation results achieved by the company through open innovation in a comprehensive manner.Thirdly,this article analyzes the motivations of the company adopting open innovation mode and conducts an in-depth analysis of the internal and external sources of innovation,innovation mechanism and business model of the company.Through combing the innovation achievements of case company,it analyzes the impact of open innovation on innovation performance.It also summarizes a series of problems arising from the implementation of open innovation by the company.Finally,this article proposes management recommendations for the case company from aspects of strategic guidance,innovation openness,and individual ability improvement.Aiming at the development status of domestic SMEs,it gives enlightenment on fostering innovation awareness,integrating internal and external resources,and further implementing innovative organizations.From government’s perspective,it expounds how to promote the construction of an innovative country from three aspects: raising scientific awareness among the mass public,encouraging enterprises to increase research & development inputs,and strengthening the protection of intellectual property rights.Through the study of the open innovation case of Sokan New Materials,this paper gives suggestions for how the company can maintain high growth and profits in the next step.More importantly,this case provides a good reference for how small and medium-sized enterprises can use open innovation in their development and transformation to expand innovation sources and acquire innovative ideas,thereby enhancing their independent innovation capabilities.