THE OPEN INNOVATION CONCEPT: ESSENCE AND PRACTICAL USE

Today, the acceleration of globalization processes, the development of the IT sector, the use of artificial intelligence, and the creation of the digital single market change the external environment for innovation, affect the peculiarities of running the business in all sectors of the economy, encourage companies to implement the open innovation strategies and create more effective forms to engage partners in cooperation. The purpose of the paper is to consider the essence of the open innovation concept, the main features of its implementation for the formation of effective channels for interaction with partners, and the selection of effective models of financing for open innovation activity in the era of digital transformation and turbulence. The prerequisites for the emergence, directions of development, and spread of the open innovation concept have been determined. A feature of open innovation activity is the use of a joint approach and the involvement of the collective intelligence of a wide range of participants (partners, clients, representatives of the scientific community, and citizens) to solve a certain problem. The exchange of ideas, information, and knowledge is at the core of the open innovation concept, its core is transparent cooperation between individual participants of the innovation process at various stages of its development. The key aspects of building effective channels of interaction with partners for the implementation of open innovations have been characterized. It has been found that an important role in implementing the open innovation model is played by targeted knowledge flows, which are used both for accelerating innovation processes within the company and for more effective use of innovations in the external environment. It has been determined, that there are appropriate financing models to attract investments for the implementation of open innovations. Venture funds, external accelerators, and spin-offs can be used by large businesses; external business incubators, business angels, startup scouting, crowdfunding, and hackathons – for medium and small businesses.