Open Innovation Practices in Colombian SMEs: Current State, Barriers, and Pathways to Success

Abstract: This research examines the present state of Open Innovation (OI) and its spread among Colombian Small and Medium Enterprises (SMEs). The research addresses the scarcity of studies on innovation diffusion in underdeveloped countries like Colombia, specifically focusing on the adoption and practices of OI among SMEs. The primary data for this research were obtained through semi-structured interviews with eight participating SMEs from various sectors located in major Colombian cities. The findings indicate that these companies are already utilizing OI approaches to different extents, showcasing significant progress towards adopting a collaborative and market-oriented mindset. Colombian SMEs' increasing recognition of the value of collaboration with external agents and diverse channels for innovation dissemination holds substantial benefits for a developing country like Colombia, contributing to job creation, economic growth, and sustainable development. However, certain barriers exist, both internal and external, which hinder the diffusion of OI practices. Internal barriers include resistance to change, high innovation costs, partner selection challenges, and concerns about losing control of knowledge. External barriers encompass the Colombian regulatory framework, limited access to financing, and evolving market conditions.