NineSigma

About NineSigma

NineSigma operates as a specialized intermediary in the open innovation and technology scouting sector. Founded in 2000 in Cleveland, Ohio, the firm was an early pioneer in providing open innovation services, predating the formal coining of the term by Henry Chesbrough. The company's name itself is a nod to continuous improvement, suggesting that after process optimization (Six Sigma), the next step is innovation (NineSigma). A pivotal moment in its early history was the engagement with Procter & Gamble, whose 'Connect + Develop' program became a landmark example of successfully integrating external innovators into a corporate strategy, a model that NineSigma helped facilitate.

The company's core business revolves around connecting its clients—typically large corporations, government bodies, and non-profits—with external solution providers such as startups, SMEs, academic researchers, and individual inventors. It addresses both immediate technical challenges and long-term strategic goals by identifying key technologies and potential partners. The business model is primarily service-based, operating through customized partnership programs and specific project engagements. These services include Technology Search to find solutions for specific problems, Technology Landscaping to map emerging trends, and Partner Searches to build strategic ecosystems. While many projects are confidential, the company also runs public-facing 'Grand Challenges' to source solutions for complex problems. Revenue is generated by providing these tailored consulting and scouting services, with an estimated annual figure of around $21.6 million.

A key component of NineSigma's service delivery is its digital platform, NineSights, launched in 2012. NineSights functions as a managed online community where 'solution seekers' can post their innovation needs and 'solution providers' can submit proposals or showcase their technologies. The platform features dedicated client galleries and thematic galleries for anonymous or prize-based challenges. This digital infrastructure supports NineSigma's global network, which has a significant footprint in the Asia Pacific region, enhanced by its parent company, NineSigma Holdings, being headquartered in Tokyo. The firm also facilitates another global network, the Open Innovation Council, which is used for foresight activities, gathering market intelligence, and testing commercial hypotheses.