Write a 6 pages paper on intels internal innovation versus microsofts external innovation. The largest semiconductor industry has its success entirely supported by research and innovation about the continued progress it has recorded over the years. They, however, decided to perform their operations without involving any formal research organization. This approach was not very profitable as ideas and knowledge became limited during innovation (Gawer & Cusumano, 2002).
Microsoft, on the other hand, has enjoyed the benefits of an open innovation system. The company engaged a system where both internal and external innovations are implemented from the very onset of its operations. Microsoft understood the importance of outflow and inflow of knowledge that is relevant to accelerating innovations. The company embraced the acquisition of intellectual property and innovations from other companies and individual researchers in the advancement of its product range. They, therefore, advanced their technology through the system of using internal and external ideas, amalgamating them to develop the very best product desirable in the market (White & Bruton., 2007).
The success of Microsoft in the provision of new products largely relies on the management of its intellectual property. This management system spans both patents to the wider sense of knowledge base that Microsoft has created mostly in its software code libraries. Internal innovations are largely supported by the broader foundation of knowledge that has further led to the efficiency and command of Microsoft product development system. The software code library also spans external innovation within the over 40,000 Microsoft partner firms.
The open system of Microsoft started in the 1970s during which its first products were directed at assisting programmers in making new applications for computing hardware. The company aimed at creating programming platforms that would help other programmes elsewhere. This was contrary to most companies like Intel that their policy embraced their own ideas.