Collaborative innovation for more value: How to make it work

Purpose The purpose of this paper is to focus on “how to create value from collaborative innovation,” which is a core question when companies plan open-innovation initiatives. China’s Huawei Technologies is taken as the main case study, with other companies’ practices as further examples to elaborate and validate a new yet practical model. Design/methodology/approach This paper is based on the direct experience over many years of two Huawei technology executives – the very recent head of the technology cooperation department and the current manager of the same unit. Findings This study provides a spiral four-stage model, named SWIM, with each stage being a decision guided by a 2 × 2 matrix. These stages, named scope, weave, identify and modularize, try to balance resource allocation toward a foreseeable value, though it might be long term. Research limitations/implications The research is primarily based on one company. The validity of its recommended model can be tested only after other companies have applied it. Practical implications The research offers a practical framework for how companies can improve their open innovation. Social implications Large companies are important players in innovation networks. Improving the ability of large companies to operate open innovation will help many other companies and the society as a whole. Originality/value The proposed model is original and provides insights from China and is not a traditional source of management innovation. The paper will also help Western readers get a better understanding of management in what will soon be the world’s largest economy.