Can outsiders solve your problem? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
When Eli Lilly & Co. was about to lose its patent protection on Prozac back in 2001, the drug manufacturer formed InnoCentive, a subsidiary whose purpose was to visit university and independent laboratories in search of new products.
The result? Access to wide-ranging research at a cost far lower than in-house R&D.
Lesson: You might be surprised to learn that great ideas from the outside cost a great deal less to develop than those you develop in house.