Guest blog: Does innovation start with collaboration?

Innovation will be key to achieving any and all net-zero ambitions. We knew that already. But what is it that drives innovation? Collaboration, both industry-wide and sometimes even cross industry.

Take the aerospace and Defence (A&D) industry, which like many other industries right now, is facing unprecedented challenges and opportunities as it transitions toward a more sustainable future. The industry contributes about 10% of global greenhouse gas (GHG) emissions and is expected to grow significantly in the coming decades.

To achieve net-zero emissions by 2050, the industry needs to invest in innovation and technology, transform its business models and processes, and collaborate with a wide range of stakeholders across the public and private sectors.

So, what about collaboration for innovation in A&D? How can the industry leverage different models of open innovation to address the complex and interrelated issues of sustainability, and answer some of the critical questions that arise from adopting such models?

Open innovation, a concept pioneered by Professor Henry Chesbrough of the University of California, Berkeley, describes a paradigm shift in innovation management. According to Chesbrough, open innovation is “the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively.”

In other words, open innovation involves opening up an organisation’s boundaries to collaborate with external partners, such as customers, suppliers, competitors, universities, research institutes, start-ups, and government agencies, to access and share knowledge, resources, and capabilities and to co-create value.

Open innovation can take various forms, such as joint ventures, alliances, licensing, crowdsourcing, hackathons, innovation hubs, and platforms.

The benefits of open innovation include:

• Reduced costs and risks – sharing financial and operational burdens with partners.
• Faster and higher-quality innovation – gaining access to diverse expertise and fresh ideas.
• Expanded market potential – reaching new customer segments and developing new revenue streams.
• Enhanced reputation – demonstrating commitment to sustainability and corporate responsibility.

The KPMG 2024 Global Sustainability in Aerospace and Defence Report highlights that collaboration is essential for decarbonisation, with 47% of industry leaders identifying it as a priority. Meanwhile, 61% see innovation as a key opportunity. However, several barriers—including regulatory uncertainties, fragmented communication, and cost pressures—continue to hinder progress.

The A&D industry has a strong history of collaboration, particularly in defence. To tackle sustainability challenges, it must embrace open innovation to develop multidisciplinary solutions. From reducing emissions to enhancing fuel efficiency and developing alternative energy sources, the industry’s competitive and highly regulated nature makes strategic collaboration essential.

While open innovation presents many opportunities, it also introduces complexities that require careful planning and execution. A&D leaders must address the following questions to ensure successful collaboration:

• How can we effectively leverage external partnerships? Identify key stakeholders—customers, suppliers, competitors, universities, and startups—and establish structured collaboration mechanisms.
• How should we develop and operationalise our innovation strategy? Define clear processes, governance structures, and incentives to support open innovation both internally and externally.
• Which projects and technologies should we prioritise? Assess the most promising sustainability initiatives and allocate resources strategically.
• How do we translate collaborative innovation into real-world impact? Ensure new solutions align with market demands, regulatory requirements, and commercial viability.

By addressing these questions, organisations can build a robust open innovation framework, ensuring their collaborative efforts drive tangible outcomes and long-term success.

The A&D industry stands at a pivotal moment in its sustainability journey. Achieving net-zero emissions by 2050 requires a fundamental shift in how the industry innovates—embracing open collaboration to access knowledge, share resources, and co-create solutions. By adopting a strategic and systematic approach to open innovation, the industry can not only enhance its sustainability performance but also strengthen its competitive position in the global market.

Want to see how open innovation is transforming industries? Join us at the West Yorkshire Innovation Festival, where industry leaders, startups, and experts will explore the future of innovation. Don’t miss this opportunity to gain insights, forge new partnerships, and discover ways to drive growth in your business.