15 August 2025
As the CEO of a company dedicated to delivering world-class open innovation programmes – including initiatives like Sellafield Ltd’s ‘Game Changers’ – I have witnessed firsthand the transformative power of open innovation (OI) in some of the most highly regulated and technically demanding sectors. The global shift towards decommissioning in industries such as nuclear, oil and gas, and defence presents us not only with towering challenges, but also with unprecedented opportunities to reimagine the way we innovate. For technical managers and innovation managers, especially those navigating the labyrinth of regulation and safety requirements, an expertly designed OI programme can be the difference between incremental progress and genuine breakthrough.
This article aims to explore the essence and practicalities of open innovation in regulated industries, drawing on evidence-based learnings and the lived experience of delivering OI at scale. I will share insights into programme design, highlight the critical features of a robust OI model, and offer guidance for technical leaders and innovation managers considering embarking on this journey.
Regulated industries are, by their very nature, conservative, risk-averse, and deeply focused on compliance. Yet, these industries are also at the epicentre of global challenges: transitioning to cleaner energy, ensuring environmental stewardship, and decommissioning legacy assets safely, efficiently and cost-effectively. The need for new technologies has never been more acute, and the demand for faster, cheaper, and safer solutions is only set to grow.
Traditional internal research and development (R&D) models, while effective for continuous improvement, often struggle to keep pace with the scale and complexity of emerging problems. Open innovation offers a compelling alternative – one that harnesses external expertise, offers access to the latest global and cross-sector technological advances, fosters creative collaboration, and accelerates the journey from challenge identification to solution deployment.
Open innovation is the process of leveraging external networks – ranging from entrepreneurial startups and research institutions to established corporates and even individual problem-solvers – to source, develop, and implement technologies that address critical operational challenges. In regulated sectors, where the environment can be harsh, the risks high, and the stakes even higher, this approach unlocks access to a broader and more nimble talent pool than any single organisation could otherwise mobilise.
In my experience, open innovation is not merely a buzzword. It is a philosophy and a strategy that, when executed with rigour, transforms how organisations approach both known and unknown problems. It involves rethinking traditional attitudes – being ready to adopt solutions based on merit, regardless of whether they come from within or outside the organisation.
Our open innovation journey began over a decade ago, as we sought to deliver value in sectors where operational complexity and stringent regulation often stifle progress. In the nuclear sector in particular, we have honed a model that is optimised for these unique demands. Let me share some numbers that illustrate the scale and impact of such a programme:
This model not only accelerates innovation, it also catalyses accelerated funding interest. The virtuous cycle of investment and advancement is driven by the engagement of both the keystone challenge owners and the technology developers. As a result, promising innovations move rapidly up the technology readiness scale, getting closer to operational deployment and making tangible impacts on mission-critical challenges.
Based on a decade of experimentation and deployment, we’ve identified four defining features that underpin the success of any robust OI initiative:
Success begins with the right question. Defining and articulating technical challenges with precision ensures alignment across stakeholders and sets the stage for targeted solution-finding. This requires deep engagement with operational leaders to understand the real pain points and to translate these into clear, actionable briefs that will resonate with innovators worldwide.
To solve complex problems, we must cast the net wide – cultivating an active global, cross-sector network and employing advanced market research capability. By actively marketing challenges across sectors and borders, we tap into diverse networks, uncovering solutions that may already exist – or could be rapidly adapted – from adjacent industries. This is where the magic of open innovation truly happens: ideas that would otherwise remain siloed become transferable assets.
Invitation is not enough; structure is essential. Our model brings challenge owners and solution providers together for focused, time-bound feasibility studies (typically 12 weeks), during which they collaboratively define scope, set success criteria, and iterate on prototypes or proofs of concept. This accelerates learning, de-risks investment, and ensures that both sides are committed to shared outcomes.
Innovation thrives when investment follows. By accelerating the innovation process, OI programmes stimulate further investment from both challenge owners – who see the potential for operational impact – and technology developers eager to scale their solutions. This not only advances technologies up the readiness scale but also drives internal cultural change toward valuing external ideas.
For technical managers in regulated sectors, adopting open innovation involves more than launching a portal or running a one-off competition. It requires thoughtful organisational design and a commitment to building what academics term “absorptive capacity” – the ability to recognise the value of new information, assimilate it, and apply it to commercial ends.
Practical considerations include:
Embedding open innovation in organisational DNA is not a trivial task, but the benefits – agility, resilience, and a constant influx of fresh ideas – are well worth the investment.
The role of governments in fostering open innovation should not be underestimated. By supporting OI programmes, providing funding, and creating regulatory space for experimentation, policymakers can catalyse both accelerated decommissioning workflows and broader technological advancement.
For industry leaders, the challenge is to reimagine decommissioning sites – not as liabilities, but as innovation assets capable of generating value far beyond their immediate missions. This means embracing OI as a strategic imperative and recognising that collaboration, not isolation, is the future of progress in regulated industries.
As technical managers and leaders in regulated sectors, the time to act is now. The global transition to decommissioning, the relentless march of technology, and the sheer scale of the challenges we face demand new approaches. Open innovation offers a powerful toolkit for those willing to embrace it – a way to accelerate solutions, manage risks, and unlock the full potential of both your teams and the wider innovation ecosystem.
At FIS360, through programmes like Game Changers, we have seen what is possible when barriers are lowered, minds are opened, and diverse expertise is brought to bear on the world’s toughest problems. I invite you to join us on this journey – to reimagine what is possible, and to shape the future of your industry through open innovation.
Get in touch to discuss partnering with FIS360 to establish a structured, high-impact open innovation programme tailored to your organisation.
Author: Frank Allison, CEO and Founder, FIS360 Ltd
