The concept of open innovation advocates that firms should purchase patents or licenses of inventions made by other companies instead of using their own research and resources. This will save the company valuable manpower and time, and will enable it to complete its projects faster. Moreover, inventions made by the company that are not being used should be licensed out to other firms, instead of being kept in research and development (R&D) centers. This presents opportunities for collaboration in research and additional revenues from licensing fees or usage of intellectual property rights. Open innovation therefore entails the sharing of technology and knowledge between firms.
By using technologies developed outside the company, many firms are facilitating growth of contract management jobs by bringing up new career advancement opportunities. Although contract managers can have many job titles, they are basically involved in formulating, analyzing, managing, and evaluating contracts. For companies that use open innovation, contract managers are involved in formulating and evaluating contracts for technology research exchanges or research collaborations. Firms that wish to collaborate usually start by drafting non-disclosure agreements. This creates opportunities for contract managers to apply their skills during the formulation, drafting, and interpretation of non-disclosure agreements. After signing non-disclosure agreements, a contract will be initiated between the parties involved.
With open innovation, technology can be applied by different markets or sectors apart from those that were originally intended. This increases technology licensing, which results in a higher demand for contract managers to formulate contracts that will govern the usage of licenses, remittances to be made to the technology inventor, and rights and responsibilities of the parties involved.
The demand for contract managers will continue to rise in the coming years as many companies adopt open innovation policies. This will provide opportunities of career advancement to contract managers and better pay for experienced professionals. Some contract managers experienced in open innovation contracts may opt to open private practices. This is, however, challenging and only those managers with significant experience and skill will be able to sustain their businesses.
As more organizations realize the necessity and advantages of adopting open innovation in their firms, contract managers will continue to benefit from this trend. There will be many chances for advancing their skills and career opportunities in companies that use open innovation. Contract managers who are well-versed in matters related to intellectual property rights, technology transfer, patents, and licensing issues will be in high demand.
