Alpheus Bingham is a pioneer in the field of open innovation and an advocate of collaborative approaches to research and development. He is co-founder and former president and chief executive officer of InnoCentive. Alpheus spent more than 25 years with Eli Lilly and Company; he retired as vice president of e.Lilly and vice president of Research Strategy. He had formerly been the vice president of Sourcing Innovation. He served on both the R&D Policy Committee and the corporate Operations Committee. He has deep experience in pharmaceutical research and development, research acquisitions and collaborations, and R&D strategic planning. During his career, he was instrumental in creating and developing Lilly's portfolio management process and establishing the divisions of Research Acquisitions, the Office of Alliance Management, and e.Lilly, a business innovation unit, from which was launched various other ventures that create the advantages of open and networked organizational structures, including InnoCentive, YourEncore, Inc., Coalesix, Inc., Maaguzi, Inc., Indigo Biosystems, Seriosity, Chorus, and Collaborative Drug Discovery, Inc. He currently serves on the Board of Directors of InnoCentive and Collaborative Drug Discovery, Inc.; the advisory boards of the Center for Collective Intelligence at MIT and the Business Innovation Factory, and as a member of the board of trustees of the Bankinter Foundation for Innovation in Madrid. He has lectured extensively at both national and international events and serves as a Visiting Scholar at the National Center for Supercomputing Application at the University of Illinois at Champaign-Urbana. He is also the former chairman of the Board of Editors of the Research Technology Management Journal. Alpheus was the recipient of The Economist's Fourth Annual Innovation Summit "Business Process Award" for InnoCentive. He was also named as one of Project Management Institute's "Power 50" leaders in October 2005. Alpheus received a B.S. degree in chemistry from Brigham Young University and a Ph.D. degree in organic chemistry from Stanford University. Dwayne Spradlin has been on the forefront of business innovation and leadership for more than 20 years. He is intensely focused on two areas: finding new ways to unleash and focus human potential using technology and defining the role of leadership in driving change in our businesses and culture. Dwayne serves as president and chief executive officer at InnoCentive, the global leader in Open Innovation. Previous positions have included president of Hoovers Online, president and COO of StarCite, senior vice president of Corporate Development VerticalNet, and director at PriceWaterhouseCoopers, where he spent ten years delivering Technology and Strategy solutions to Fortune 500 clients including Intel, Compaq, Caremark, and United Airlines. Dwayne currently sits on the Board of Directors of both InnoCentive and Cortera. Considered an authority on crowdsourcing, Open Innovation, and the role of Innovation in Philanthropy, Dwayne has been a keynote speaker at events on five continents, He is frequently interviewed and has been featured on CNBC, ABC, NPR, and BBC and quoted in the Economist, BusinessWeek, The New York Times, and many other journals and periodicals. Dwayne holds a B.A. degree in applied mathematics and an M.B.A. degree from the University of Chicago. He lives in Southlake, TX, with his wife and three children.

The Open Innovation Marketplace introduces groundbreaking strategies for leveraging a world of innovators to develop breakthrough products faster, with lower cost and risk. Drawing on their experience building InnoCentive, the pioneering open innovation platform, the authors show how to dramatically increase the flow of high-value innovations your organization can discover--and deliver.

Preface xxi Chapter 1: Introduction 1 Part I: Challenge Driven Innovation: How a Marketplace of Innovation Allows Us to Reframe the Innovation Model, Improve Performance, and Manage Risk Chapter 2: The Future of Value Creation 21 Chapter 3: A New Innovation Framework 39 Chapter 4: The Long Tail of Expertise 67 Chapter 5: The Selection of Appropriate Innovation Channels 91 Part II: The Challenge Driven Enterprise: Virtualizing the Business Model to Drive Innovation, Agility, and Value Creation Chapter 6: The Challenge Driven Enterprise 117 Chapter 7: Transformation 139 Chapter 8: The Challenge Driven Enterprise Playbook 163 Chapter 9: Leadership 199 Afterword 219 Endnotes 221 Supplemental Reading 227

Many technical obstacles to effective innovation no longer exist: today, companies possess global networks that can connect with knowledge from virtually any source. Today