[2] The idea for InnoCentive came to Alpheus Bingham and Aaron Schacht in 1998 while they worked together at Eli Lilly and Company during a session that was focused on exploring application of the Internet to business.
In December 2006, shortly after Dwayne Spradlin took the helm as CEO, the company signed an agreement with the Rockefeller Foundation to add a non-profit area designed to generate science and technology solutions to pressing problems in the developing world.
[7] The Challenge description clearly defines the problem or need, the solution and Intellectual Property requirements, and the award amount that will be paid out for winning submissions.
[8] After the client has finished evaluating the submissions and selecting the winners, InnoCentive handles the administration of award payments and IP transfers or licensing.
[9] InnoCentive is a SaaS-based open innovation platform that allows organizations to run private, internally focused Challenge programs that engage their employees, partners or customers.
[7] A study conducted by Forrester Consulting found that "the hygiene and health company Essity received a Return on Investment of 74% with a payback period of less than 3 months from their work with InnoCentive[12]".
Another study conducted by Forrester Consulting found that Syngenta achieved a return on investment of 182% with a payback period of less than 2 months.