Open innovation includes

• A. Limiting idea sources to employees.
• B. Extending the search beyond the firm and using crowdsourcing.
• C. Internal-only development with no external input.
• D. Strict secrecy about all ideas.

Answer: (B)

Open innovation means actively seeking and incorporating ideas from outside the organization, and using external paths to bring innovations to market. It involves extending the search beyond the firm and often leveraging crowdsourcing to tap diverse knowledge and capabilities. This approach contrasts with relying only on internal ideas and keeping everything secret, which is characteristic of closed innovation. Therefore, extending the search beyond the firm and using crowdsourcing best embodies open innovation.