People outside a company may want to participate in innovation projects for many reasons, and we can classify these motivations into two broad categories: extrinsic and intrinsic.
The simplest form of intrinsic motivation is financial. Potential profits drive third-party companies that develop software for the Nintendo of America Inc. Wii platform, for example. But motivation can also stem from less direct or obvious reasons. People might participate in the innovation process in order to acquire certain skills, or they might want to advance a technology they themselves use. The benefits of engaging in open innovation might also be more long term, helping to establish reputations and build relationships.
Purely intrinsic considerations can also strongly motivate people. Sometimes, simply enjoying the task itself can be a powerful factor. Just look at how open-source software projects, Wiki contributions and other similar efforts have succeeded. People consider these voluntarily adopted tasks inherently interesting or intellectually challenging, particularly when contributors feel they’re part of a larger cause. Such external innovators will often work for free -- or even at a loss for their services. Gaining status and a stronger sense of identity also intrinsically motivates people to continue working on these collaborative efforts.
This article is adapted from “How to Manage Outside Innovation,” by Kevin J. Boudreau and Karim R. Lakhani, which appeared in the Summer 2009 issue of MIT Sloan Management Review. The complete article is available at http://sloanreview.mit.edu/smr/.