New product development (NPD) in today’s business environment is challenged by short product–life cycles, technical complexity, market uncertainties and rising cost of development. Through the ecosystem model these challenges can also be addressed by sharing costs, sharing risks, and sharing profits by collaborating with others, or outsourcing .
Increasingly, successful new product development calls for collective effort by a collaborative network. The risks involved in product development can be
alleviated through collaboration and knowledge sharing, while potentially improving customer satisfaction and taking advantages of market opportunities that would be overwhelming for single companies.