Along with the acceleration of economic globalization, completion for market in fierceness and the rapid development of technology, it will increase the R&D costs if companies still take closed innovation business mode as their R&D strategy. Further more, under the closed innovation some new technology and inventions are usually ignored because the companies can not give feedbacks quickly to the new outside changes. So the open innovation business mode is becoming an innovation strategy which affects the innovation modes of companies, industries and states. In fact, company is the very role to practice this innovation business mode and also the one to benefit most from it. It is significant to study the motive force which is the reason of companies to take the open innovation as their R&D strategy.Compared with the closed innovation business mode, this paper summarizes the theory and the conception of open innovation. Under the open entertainment, it is very important to define the boundary of organization in enterprise, which will promote the production efficiency and save the cost of production and trading. Based on the theory of trade cost, this paper analyzes the possible related trade costs when company takes open innovation business mode. And then the paper studies and analyzes the environmental and inner motive factors for a company to take open innovation strategy. Based on these factors and the theory of trade cost, the paper puts two kinds of open innovation business modes for companies. And then the paper discusses the practicability of these modes by investigating the open innovation of Philips which is a successful example.In the finality, the problems requiring further studies are discussed. |