The conditions that need to be met for open innovation to work are multiple and dependent on type of activity that SME is after for. Nevertheless, a few elements are necessary.

1. External partner. The SME needs somebody from outside to work together with. External partners may be:

• business partners both vertical and horizontal (suppliers, distributors, sister companies),
• other companies that have some technology or solution to share or sell,
• end consumers or customers
• universities, schools and research institutes
• indepentent inventors

2. Communication channel. Collaboration with external partners needs to be effective and efficient in order to be fruitfull. The type of communication that will be used depends heavily on the innovation partners and their properties. In some cases, a face-to-face communication is enough, if the SME has only one partner to work with. In other cases, a communication network should be used, when there are more than two partners, and they are unable to travel to each other. If SME wants to include it’s customers in the innovation process, it will have to decide what is the best way to collect their needs, ideas and oppinions.

3. A new management approach. SME can not innovate using external partners unless it’s management reckognizes the nature of that process and embraces it.