Not invented here

The 'Not Invented Here' (NIH) bias refers to a cultural or psychological stance where individuals or organizations resist using, acquiring, or even acknowledging external knowledge, ideas, or solutions, simply because these innovations originate outside their own environment. This bias is characterized by the preference for internally developed products or ideas, often leading to skepticism and dismissal of externally sourced solutions.

How it works

NIH bias operates on the premise of familiarity and a sense of pride or ownership. Within organizations, it is often fueled by a culture that overvalues internal developments and underappreciates external achievements. The bias is sustained by cognitive psychology principles where familiar or self-derived solutions are perceived as superior, fostering a dismissive attitude towards external contributions.

Examples

• A tech company ignores a competitor's advanced software solution, opting to develop a similar tool in-house, despite the external option being more cost-effective and reliable.
• An academic refuses to consider research findings from another institution, favoring their own theories, even when external evidence is more robust and well-substantiated.

Consequences

NIH bias can lead to inefficiencies, increased costs, and missed opportunities for innovation. Organizations may fall behind competitors who are more open to external ideas and collaborations. It can result in redundant work and stagnation, as the focus remains on reinventing existing solutions rather than embracing potentially superior external innovations.

Counteracting

To counteract NIH bias, organizations and individuals can cultivate a culture of openness and collaboration. Encouraging cross-departmental and cross-organizational partnerships can help. Implementing policies that reward the integration of external knowledge and solutions, and fostering a mindset that values diverse perspectives can also mitigate the bias.

Critiques

Critics of the NIH bias concept argue that preference for internal solutions can sometimes be justified by specific contextual factors such as compatibility with existing systems, organizational know-how, or strategic alignment. Dismissing NIH as a purely negative bias oversimplifies the complexity of strategic decision-making processes.

Fields of Impact

Also known as

Relevant Research

• Not Invented Here: Managing the Challenge of External Knowledge Acquisition

  David R. King, Michele D. Williams (2007)

  Academy of Management Journal

• The Role of R&D Cooperation in Innovation Resistance

  Annie Berner, Lisa Baert (2012)

  Research Policy