Break Out to Open Innovation

Mercedes-Benz AG, a global automaker producing over 2 million cars annually, recognized the need to collaborate with startups to drive innovation in the rapidly transforming automotive industry. However, their existing innovation processes were not well-suited for uncertain collaborations with startups. To address this, Mercedes formed a new team within their research and development department to build a bridge between startups and internal business units. They partnered with academia and industry to create Startup Autobahn, an open corporate accelerator (CA) that welcomes multiple sponsor companies and attracts a broader array of startups. This model allows Mercedes to quickly incorporate new technologies from startups and accelerate their innovation efforts. The open CA design emphasizes strategic fit between sponsors and startups and harnesses the network effects of open innovation. Mercedes' participation in Startup Autobahn has provided insights into building internal commitment to external innovation, embracing coopetition, and choosing a playing field for innovation projects. The open CA model offers a more efficient and effective approach to corporate innovation.