The Future of Innovation: Why Co-Innovation is Essential for Business Growth

In today’s rapidly evolving technological landscape, businesses must rethink their approach to innovation. No longer is success achieved by working in silos—true progress requires collaboration. Co-innovation, or the practice of companies working together to create new solutions, has become a necessity rather than an option.

During a recent podcast discussion, Peter Sandberg, an innovation strategist at Combient, a Swedish innovation network, shared valuable insights into why co-innovation is the future of business success. Combient’s network of 38 multinational companies serves as a platform for collaboration, allowing businesses to share knowledge, co-develop solutions, and accelerate digital transformation.

The Shift from Ego-Innovation to Eco-Innovation

Historically, companies have pursued ego-driven innovation, where each business strives to develop and protect its own competitive advantage. However, in today’s ecosystem-driven economy, companies must shift towards eco-innovation—a collaborative approach where multiple organizations contribute their expertise to create solutions that benefit the entire industry.

According to Sandberg,

“If you want to grow your business and make your customers happy, you need to collaborate with others. No single company can solve every problem alone.”

This shift is especially crucial in industries facing rapid technological advancements, such as artificial intelligence (AI), blockchain, and platform-based business models. The companies that embrace cross-industry collaboration will be the ones that drive true market disruption and long-term value creation.

Overcoming Barriers to Co-Innovation

Despite its advantages, co-innovation is not an easy transition for most organizations. Large corporations are often structured around short-term profitability, with KPIs and governance models that reward incremental innovation rather than bold, long-term initiatives.

Sandberg highlights this challenge:

“Many large corporations are optimized for exploiting existing business models rather than exploring new opportunities. Co-innovation requires a mindset shift—from thinking about competition to thinking about partnerships.”

One of the main obstacles is the reluctance to share intellectual property or strategic insights with other companies. However, the benefits of co-innovation far outweigh the risks. Companies that participate in co-innovation networks gain early access to new technologies, faster go-to-market opportunities, and insights from diverse industries that they would not have on their own.

The Role of Storytelling in Co-Innovation

One of the most underestimated yet critical factors for successful co-innovation is storytelling. A shared vision and compelling narrative help align multiple stakeholders and create a sense of purpose beyond individual corporate objectives.

“If you cannot make others see what you are seeing, it’s impossible to bring them on board. The best innovators are also great storytellers—they can paint a vision that inspires others to collaborate.” – Peter Sandberg

A strong joint narrative enables companies to build trust, align goals, and ensure that all stakeholders—executives, employees, and partners—are working towards a common purpose. Whether it’s responding to disruptive forces like AI or creating new platform-driven ecosystems, businesses need a clear and compelling story to guide their co-innovation efforts.

Looking Ahead: The Future of Co-Innovation

As industries become more interconnected, co-innovation will continue to evolve. Networks like Combient will play an even bigger role in bringing companies together to tackle complex challenges and develop next-generation solutions.

The real competitive advantage will no longer be about who can innovate the fastest alone, but who can build the best ecosystem of innovation partners. Companies that embrace this mindset shift will be the ones shaping the future.

If your company is still operating under an ego-innovation model, now is the time to rethink your strategy. The future belongs to those who collaborate.

To watch or listen to the full conversation with Peter Sandberg, follow this link: https://www.youtube.com/watch?v=JAlEDQLh4S4