CHAPTER 3
BARRIERS AND CHALLENGES
Collaboration trends
CHAPTER 2
The race to harness AI and other cutting edge tech is driving a surge in Open Innovation, now seen as Important or Mission Critical by 8 in 10 corporates. 70% of corporations collaborating on artificial intelligence consider startups to be essential to their AI strategy. This shift has transformed collaboration from an opportunity into a necessity.
The appetite for Open Innovation is accelerating, driven in part by the race to integrate AI across business functions. Corporates are no longer dabbling in AI experimentation; they are actively seeking partners who can help them scale and refine their strategies.
Today, 70% of corporates who have run AI collaborations view startups as either integral to their AI development or as key partners in driving innovation. This marks a significant shift — from startups being seen as niche solution providers to becoming central players in long-term AI strategies.
The reasons behind this shift are clear. Corporates recognise that tech startups bring agility, deep technical expertise, and the capacity to accelerate AI adoption.
- When asked why they collaborate with startups on AI, 56% cited the need to speed up AI implementation.
- 55% wanted to explore opportunities to improve their own AI use.
- and 54% sought access to specialised AI expertise.
Strategic, not just operational partners
Fewer corporates (20%) see collaborations purely as a means to fill internal capability gaps — indicating that partnerships are increasingly strategic, not just operational.
20%
While success rates vary, the majority of AI collaborations are meeting expectations. 68% of corporates say they achieve their objectives always or most of the time.
With the pace of AI development accelerating, refining these partnerships is crucial. Looking ahead, 25% of corporates see startups as integral to their AI development, while 45% view them as key partners for driving innovation. The message is clear: startups are no longer peripheral to AI strategies — they are at the core of them.
Stéphane Dupré la Tour, Vice President of Deep Tech and Digital Tech, EDF R&D
Enthusiasm for Open Innovation
By industry, Aerospace (92%) and Telecommunications (89%) lead the way in their enthusiasm for Open Innovation while Public Sector & Government (51%) and Defence & Homeland Security (42%) lag behind.
Aerospace:
0%
Defence & Homeland Security:
0%
Energy & Utilities:
0%
Financial Services:
0%
Health:
0%
Insurance:
0%
Legal Services:
0%
Media & Entertainment:
0%
Public Sector & Government:
0%
Retail:
0%
Telecommunication:
0%
Transport:
0%
Completed Open Innovation projects by industry
Defence & Homeland Security:
0%
Public Sector & Government:
0%
Legal Services:
0%
Health:
0%
Transport:
0%
Retail:
0%
Energy & Utilities:
0%
Financial Services:
0%
Media & Entertainment:
0%
Insurance:
0%
Telecommunications:
0%
Aerospace:
0%
Corporate engagement in Open Innovation by industry
By country, Sweden and the Netherlands are most keen on Open Innovation (at 84% and 87% respectively), while Belgium and Luxembourg are the least open to startup-collaborations, at 54% for both.
The number of collaboration projects in a year averages between two to five collaborations in the last 24 months for both corporates (59%) and startups (64%)
Open innovation is quickly becoming one of the most effective approaches to integrating AI. By leveraging Open Innovation, corporates are quickly accessing the tools and capabilities that can take years to develop internally. As a complement to these internal efforts, Open Innovation has become a necessary part of the corporate strategy supporting them to faster navigate uncertainty and increase incumbent organisations' resilience.
NATHAN FURR
Strategy Professor, INSEAD
Financial Services and Public Sector & Government have the highest average number of collaborations, while Legal Services and Defence & Homeland Security have the lowest.
0-1:
1%
2-5:
1%
6-10:
1%
10+:
1%
Corporates: No. of startup collaborations undertaken in past 24 months
0-1:
1%
2-5:
1%
6-10:
1%
10+:
1%
Startups: No. of corporate collaborations undertaken in past 24 months
Susannah Matschke, Head of Data and AI, Sopra Steria Next, UK
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
72%
60%
81%
80%
77%
79%
59%
74%
82%
87%
87%
77%
80%
Aerospace:
Defence & Homeland Security:
Energy & Utilities:
Financial Services:
Health:
Insurance:
Legal Services:
Media & Entertainment:
Public Sector & Government:
Retail:
Telecommunications:
Transport:
Average
Companies rating startup collaboration as Mission Critical or Important
Open Innovation is Important or Mission Critical for 8 in 10 corporates
The strategic importance of Open Innovation continues to grow, with 8 in 10 (80%) of corporates now judging it Important or Mission Critical compared to just over two-thirds (67%) in 2023. This increase shows that corporates recognise the potential of leveraging external expertise from startups and also demonstrates their resilience and dedication to Open Innovation, since present and past levels of success are relatively low.
The Telecommunications sector has the highest strategic priority of Open Innovation, while Legal Services has the least.
Very Important (mission critical)
Important, but not mission cirtical
Unimportant
Slightly Important
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Aerospace:
Defence & Homeland Security:
Energy & Utilities:
Financial Services:
Health:
Insurance:
Legal Services:
Media & Entertainment:
Public Sector & Government:
Retail:
Telecoms:
Transport:
Average
72%
36%
18%
9%
60%
60%
40%
0%
81%
57%
20%
0%
80%
38%
19%
1%
77%
41%
22%
1%
79%
41%
19%
3%
59%
42%
42%
0%
74%
43%
23%
3%
82%
62%
16%
2%
87%
43%
13%
1%
87%
44%
11%
1%
77%
50%
20%
3%
80%
36%
18%
9%
Companies rating startup collaboration as Mission Critical or Important
Open Innovation is mission critical for 8 in 10 corporates
The strategic importance of Open Innovation continues to grow, with 8 in 10 (80%) of corporates now deeming it important or mission critical compared to just over two-thirds (67%) in 2023. This increase shows that corporates recognise the potential of leveraging external expertise from startups and also demonstrates their resilience and dedication to Open Innovation, since present and past levels of success are relatively low.
The telecoms sector has the highest strategic priority of Open Innovation, while legal services has the least.
Very Important
Important, but not mission cirtical
Slightly Important
Unimportant
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Aerospace:
Defence & Homeland Security:
Energy & Utilities:
Financial Services:
Health:
Insurance:
Legal Services:
Media & Entertainment:
Public Sector & Government:
Retail:
Telecoms:
Transport:
Average
36%
36%
18%
9%
0%
60%
40%
0%
24%
57%
20%
0%
42%
38%
19%
1%
36%
41%
22%
1%
38%
41%
19%
3%
17%
42%
42%
0%
31%
43%
23%
3%
20%
62%
16%
2%
44%
43%
13%
1%
43%
44%
11%
1%
27%
50%
20%
3%
36%
36%
18%
9%
How important is startup collaboration for your organisations strategy?
Open Innovation is mission critical for 8 in 10 corporates
The strategic importance of Open Innovation continues to grow, with 8 in 10 (80%) of corporates now deeming it important or mission critical compared to just over two-thirds (67%) in 2023. This increase shows that corporates recognise the potential of leveraging external expertise from startups and also demonstrates their resilience and dedication to Open Innovation, since present and past levels of success are relatively low.
The telecoms sector has the highest strategic priority of Open Innovation, while legal services has the least.
Very Important
Important, but not mission cirtical
Slightly Important
Unimportant
Aerospace:
36%
36%
18%
9%
Defence & Homeland Security:
60%
35%
27%
40%
Energy & Utilities:
24%
56%
20%
29%
Financial Services:
46%
35%
27%
29%
Health:
46%
35%
27%
29%
Insurance:
46%
35%
27%
29%
Legal Services:
46%
35%
27%
29%
Media & Entertainment:
46%
35%
27%
29%
Public Sector & Government:
46%
35%
27%
29%
Retail:
46%
35%
27%
29%
Telecoms:
46%
35%
27%
29%
Transport:
46%
35%
27%
29%
Average
46%
35%
27%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Aerospace:
Defence & Homeland Security:
Energy & Utilities:
Financial Services:
Health:
Insurance:
Legal Services:
Media & Entertainment:
Public Sector & Government:
Retail:
Telecoms:
Transport:
Average
36%
36%
18%
9%
0%
60%
40%
0%
24%
57%
20%
0%
42%
38%
19%
1%
36%
41%
22%
1%
38%
41%
19%
3%
17%
42%
42%
0%
31%
43%
23%
3%
20%
62%
16%
2%
44%
43%
13%
1%
43%
44%
11%
1%
27%
50%
20%
3%
36%
36%
18%
9%
How important is startup collaboration for your organisations strategy?
Open Innovation is mission critical for 8 in 10 corporates
The strategic importance of Open Innovation continues to grow, with 8 in 10 (80%) of corporates now deeming it important or mission critical compared to just over two-thirds (67%) in 2023. This increase shows that corporates recognise the potential of leveraging external expertise from startups and also demonstrates their resilience and dedication to Open Innovation, since present and past levels of success are relatively low.
The telecoms sector has the highest strategic priority of Open Innovation, while legal services has the least.
Show details
Show details
Pedro Muñoz, Head of Open Innovation, BBVA
Areas of collaboration vary by country and industry
AI, cybersecurity and sustainability are the three most popular areas of collaboration but this varies slightly across industries and countries.
With regards to sustainability collaborations in Norway, the UK, and Germany are taking the lead, with Denmark, Belgium and Luxembourg the furthest behind.
of corporates now judge Open Innovation Important or Mission Critical
80%
Defence & Homeland Security (DHS) and Telecommunications have the most cybersecurity collaborations. Financial Services and Media & Entertainment industries have the most AI collaborations. Meanwhile Financial Services and DHS have collaborated the most in sustainability.
By country, Switzerland, Denmark and Norway have the highest amount of AI collaborations, but the least amount of cybersecurity partnerships. The countries where there were the highest number of cybersecurity collaborations were France (59%), the Netherlands (58%), Spain and the UK (both with 54%).
Large corporates have greatest appetite for Open Innovation
It’s easy to assume that smaller corporates would benefit more from collaborating with startups as they might lack internal capabilities and manpower. Instead, we see that the lack of agility and need for speed of larger corporates attracts them to collaborations, since the larger the corporate the longer the time to market or developing solutions takes.
This is most evident with AI, as the bigger the corporate, the more AI collaborations we can see. Of corporates with more than 5,000 employees 72% have undertaken AI collaborations compared to an all-corporate average of 57%.
Darius Selke, Head of Sopra Steria Ventures Germany
AI collaborations launched by company size:
1 - 49
1%
1 - 49
1%
1 - 49
1%
1%
1 - 49
1%
1 - 49
1-49
0%
50-249
0%
250-999
0%
1000-5000
0%
>5000
0%
Startups have become crucial to
AI strategy
Historically, startup collaborations have been a way for corporates to cover internal gaps in their capabilities and expertise. While this is still true to an extent there has been a shift. 8 in 10 (80%) corporates say it’s not because they lack AI-capabilities that they want to collaborate with startups, but rather that startups are crucial in executing their AI strategy to realise its full potential and gain competitive advantage.
Meanwhile, startups report that when contacted by corporates on AI projects, the corporates are most interested in pilots and Proof of Concepts. Meaning, corporates do not prioritise full scale implementation and post-implementation support and scaling.
This is why so many corporates struggle to harvest real value from AI. If they only seek to collaborate in R&D and experimentation, the first phases of the innovation process, without an initial plan for implementation and scaling. This could reveal a lack of a strategic approach. Instead, corporates have no intention of scaling, but are simply using Open Innovation as a tool to test new ideas.
of corporates with more than 5,000 employees have undertaken AI collaborations.
All-corporate average is 57%
72%