Discuss the Not-Invented-Here Syndrome with the Help of an Example

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Firms following the closed innovation model are at risk of falling prone to the not-invented-here syndrome: "If the R&D leading to a discovery and a new development project was not conducted in-house, it cannot be good." As documented, the pharmaceutical company Merck suffers from the not-invented-here syndrome. That is, if a product was not created and developed at Merck, it could not be good enough. Merck's culture and organizational systems perpetuate this logic, which assumes that since the company hired the best people, the smartest people in the industry must work for Merck, and so the best discoveries must be made at Merck. The company leads the industry in terms of R&D spending, because Merck believes that if it is the first to discover and develop a new drug, it would be the first to market.

Discuss the Not-Invented-Here Syndrome with the Help of an Example

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