There has been an active development of ‘open innovation’ practices, conducted independently by large corporations, or using third-party platforms and mediators. There is a kind of hierarchy of increased density of participation going from open innovation under the control of corporate plays, to more active user input processes for which the concepts of Co-Creation and Co-Design have been used in the literature.
Open Innovation refers to business processes where innovation is no longer dominated by internal mechanisms in the firm, but through the cooperation, participation and sourcing of both domestic and external inputs. This concept is used essentially for processes where the firm is still in control and at the center of the value chain. It is associated with related terms such as co-design, co- creation, and sourcing the crowd, i.e. crowdsourcing.