In the cooperation phase, which approach is used to facilitate ideas and knowledge sharing with external parties?

• A. Closed innovation
• B. Horizontal linkages model
• C. Open innovation
• D. Vertical integration

Answer: (C)

Open innovation is about bringing in ideas and knowledge from outside the organization and sharing internal know-how with external partners. In the cooperation phase, this outward-facing collaboration is key: you work with customers, suppliers, universities, startups, and other external parties to generate, refine, and apply ideas. This accelerates problem solving and innovation by tapping a broader pool of expertise than what’s available inside the company.

Closed innovation relies on internal R&D alone, without tapping external sources. Vertical integration aims to own and control more of the supply chain, which isn’t about external idea sharing. The horizontal linkages approach focuses more on coordination across internal units or, at times, limited external relationships at the same level, rather than broad external knowledge exchange.