Corporate innovation leaders are under pressure to deliver results—fast. Traditional R&D pipelines are slow, siloed, and often disconnected from what’s actually happening in the market. That’s why more organizations are integrating open innovation challenges into their startup scouting strategies—and with good reason. These challenges don’t just generate ideas; they surface high-potential startups that are already solving the problems you care about.
Why startup scouting needs a rethink
Startup scouting used to mean sending a few team members to tech conferences, browsing accelerator portfolios, or relying on internal networks. But the landscape has shifted. Today’s most promising startups may not be where you’re looking—or looking for you. Passive discovery isn’t enough. Innovation leaders need a system that actively pulls qualified startups toward their organization.
That’s where open innovation challenges come in. By framing a strategic problem and opening it up to the global startup ecosystem, you invert the scouting model. You stop chasing and start attracting.
Platforms like Agorize enable this shift by offering access to a global community of startups and a proven framework to launch challenges that resonate with real business goals. They help innovation leaders that want to start using open innovation challenges as a startup scouting strategy.
Open innovation challenges: Not just buzz, but structure
Open innovation challenges are structured calls for solutions around specific business needs—whether that’s optimizing supply chains, improving customer experiences, or launching new digital services. The best challenges are laser-focused, time-bound, and well-promoted through the right ecosystems.
When startups respond to these challenges, they’re not just applying—they’re self-qualifying. You immediately see who’s building in your space, who can pitch a compelling solution, and who’s ready to collaborate. In essence, these challenges become a real-time filter for high-fit startups.
Agorize helps structure this process by enabling companies to craft targeted challenge briefs, manage applicant workflows, and surface insights across each submission—at scale.
Scouting with signal, not noise
One major advantage of using open innovation challenges for scouting is that you eliminate noise. Instead of wading through databases or scouting firms’ pipelines, you’re evaluating startups that are actively engaging with your business case. This naturally brings forward teams with technical readiness, market traction, and cultural alignment.
You also gain a competitive edge: while your competitors are still browsing last year’s accelerator cohorts, you’re engaging startups that are solving your exact problem—right now.
What to look for in a high-impact challenge
To use open innovation challenges effectively, avoid generic briefs. The most successful corporate-startup collaborations come from challenges that:
- Are tied to a business unit’s roadmap or KPI
- Have executive sponsorship
- Offer a clear path to pilot or procurement
- Include incentives aligned with startup needs (not just cash—think PoCs, data access, or market exposure)
This ensures that when a startup participates, they see a real opportunity—not a PR stunt.
From challenge to pipeline
Running a challenge is just the start. What happens after the final pitch matters more. The post-challenge workflow should include:
- Scoring mechanisms to evaluate fit across technical, commercial, and cultural dimensions
- Internal champions assigned to shortlisted startups
- A structured handoff into your pilot or procurement process
The challenge is your top-of-funnel. Your internal innovation process should be designed to absorb what comes next.
Real-world examples that work
Global companies are already embedding open innovation into their scouting.
Novo Nordisk: A patient-centric challenge with global impact
Novo Nordisk exemplifies using open innovation challenges as a startup scouting strategy. In late 2023, they launched the ‘Actors of Diabetes’ competition to identify innovative e-health solutions enhancing the patient journey in diabetes care. Utilizing the Agorize platform, the challenge attracted 38 startup submissions, culminating in a finale at Station F in January 2024. The jury awarded DiappyMed the grand prize, leading to a global partnership, while La Tribu des Supers received the ‘Coup de Cœur’ award. This initiative not only surfaced high-potential startups but also positioned Novo Nordisk as a proactive player in digital health innovation.
NEC: Turning global reach into real-world collaboration
NEC’s Innovation Challenge in 2022 highlights the effectiveness of open innovation in startup scouting. By leveraging Agorize’s platform, NEC attracted 324 participants from 66 countries, focusing on co-creating next-generation innovations. The challenge led to four collaborative projects between NEC, its partner companies, and the winning startups, demonstrating how structured innovation initiatives can yield tangible partnerships and drive technological advancement.
Many of these success stories originated through platforms like Agorize, which connects enterprises with over thousands of startups actively solving real-world challenges across industries.
Opportunities to scale
Once the model works, scaling is straightforward. You can:
- Localize challenges for regional markets
- Target different innovation themes per quarter
- Create recurring challenge series to build brand equity with startups
Each challenge becomes a scouting mechanism that feeds directly into your innovation pipeline. Over time, your brand becomes a magnet for top startups—and your cost per qualified lead drops dramatically compared to traditional methods.
Start with strategy, not tactics
Open innovation challenges should be part of a larger startup engagement strategy, not a one-off experiment. Define the business objectives, align stakeholders early, and work with platforms that can connect you to curated startup communities.
Agorize partners with global enterprises to design and deliver challenge-based scouting programs that uncover real solutions—not just ideas. Done right, open innovation doesn’t just find startups—it builds partnerships, accelerates transformation, and positions your company at the center of the innovation ecosystem.
Related reading: A 5-step guide to corporate startup engagement
