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Quilts of Denmark: Managing Open Innovation

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Quilts of Denmark was a Danish start-up company founded in 2000 with the goal of producing high-quality, functional quilts and pillows that contributed to healthy sleep. The company's open innovation with a space agency and technology company resulted in an "intelligent" quilt that regulated body heat, providing users with an elusive but much-desired experience: a good night's sleep. Selling a premium product in a commodity market was a challenge, and competitors were close behind. In 2010, Quilts of Denmark was preparing to introduce a new generation of temperature-regulating quilts, and the company's founders needed to decide how to introduce their newest innovation to the market.
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