Ever wonder how some of the most groundbreaking products come to life? Nike’s A.I.R. technology, Coca-Cola’s iconic fountain dispenser, and Nivea’s bestselling “Invisible Black and White” deodorant all share a common thread: they were developed through open innovation.
From Nike’s designers teaming up with elite athletes to Nivea partnering with chemical and textile experts, these companies didn’t go it alone. They collaborated with external innovators to create products that changed the game.
This magic happens in open innovation labs—places where corporates, startups, and experts work together to experiment, test, and bring new ideas to market. Let’s dive into what makes these labs so essential and explore a few standout examples.
What are “Open Innovation Labs”?
At their core, open innovation labs are environments designed to foster collaboration between established companies and external innovators. These labs serve as hubs where new ideas can be tested, developed, and implemented—often at a faster pace than traditional R&D departments can manage. In a world that thrives on agility, these labs are crucial for companies looking to stay ahead of the curve.
The Real Deal: Collaboration Over Competition
Open innovation labs promote the idea that two (or more) heads are better than one. Rather than relying solely on in-house talent, businesses are embracing the wisdom of crowds. They invite startups, universities, suppliers, and even competitors to share insights, technologies, and strategies.
Many companies recognise that having a diverse range of perspectives—whether from their own staff or external partners—is crucial for driving innovation. According to Deloitte, 83% are actively seeking diverse voices, believing it helps attract talent (58%), fosters unconventional thinking (56%), and enhances productivity (32%). In short, diversity isn’t just a nice to have; it’s essential for innovation.
Spotlight on Successful Open Innovation Labs
Nestlé’s R&D Innovation Lab
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Nestlé’s open innovation lab is focused on developing healthier and more sustainable products by collaborating with startups and researchers. For instance, they’ve partnered with January AI to use digital twin technology, exploring how AI can drive product innovation and help create personalised nutrition solutions tailored to specific needs.
They’ve also made a £100 million investment in food delivery startup Wonder Group, partnering to manufacture pizza and pasta while expanding their presence in the foodservice market, capitalising on the rise of out-of-home dining.
On the sustainability front, Nestlé UK and Ireland have teamed up with Yes Recycling to tackle hard-to-recycle plastics, reinforcing their commitment to cutting-edge eco-friendly solutions.
BMW’s Startup Garage
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BMW’s Startup Garage launched the Venture Client model in 2015, changing the way corporates work with startups. Instead of just investing, BMW became the first customer, testing and integrating new technologies directly into their cars. This approach fast-tracked innovations like advanced driver assistance systems and AI-powered maintenance.
Back then, no one else was doing this—now it’s an industry standard, with companies like Bosch and Siemens following suit. What started as a bold move is now a proven model, driving real results.
From just seven projects a year to over 30 today, BMW’s Startup Garage continues to push boundaries, helping both BMW and startups innovate faster and smarter.
L’Oréal’s Big Bang
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Launched in mainland China in 2020, L’Oréal’s Big Bang Beauty Tech Innovation Programme has expanded to Japan and South Korea in 2023, with plans for Taiwan and Hong Kong in 2024. Now, all five North Asian markets are running localised programmes, boosting beauty innovation and investment across the region.
The Big Bang programme encourages disruptive beauty solutions by partnering with startups and SMEs. This open innovation initiative is key to L’Oréal’s ‘Beauty Triangle’ strategy, which aims to tap into the unique ecosystems of China, Japan, and South Korea to drive growth and synergy in local markets.
Embracing the Shift
Open innovation is more than a trend; it’s a transformative approach. Companies that set up open innovation labs are boosting their capacity for innovation while cultivating a collaborative culture that can spark real breakthroughs. In today’s rapidly changing market, those who know how to tap into external insights will stay ahead of the curve.
So, whether you’re a corporate leader, a startup founder, or just curious about the future of innovation, pay attention to these open innovation labs. They’re not just experimenting; they’re actively shaping the future of their industries.
Looking to activate an Open Innovation lab, streamline your process, or connect with the right startups? At Co:cubed, we help the world’s biggest companies solve the world’s biggest problems through our network of 12m+ startups. Get in touch with us to learn more with our Head of Innovation, neal.tantisukrit@cocubed.com