Closed innovation is defined as

• A. Generating ideas externally and bringing in partners for development.
• B. Generating ideas in-house and developing, manufacturing, marketing, and distributing them internally.
• C. Outsourcing marketing but not product development.
• D. Crowdsourcing ideas from customers only.

Answer: (B)

Closed innovation means keeping the entire development and delivery process inside the company, from idea generation through development, manufacturing, marketing, and distribution, with little to no reliance on outside partners. This approach is captured by describing ideas and all subsequent work as being created and controlled internally, including the final products and their path to market. The other descriptions involve bringing in external ideas, partners, or externalized functions, which reflect open or hybrid approaches rather than a fully internal, self-contained process. So, a firm that generates ideas and handles development, production, marketing, and distribution entirely in-house best exemplifies closed innovation.