In the new millennium, it is almost given that enterprises can and should use external ideas as well as internal ideas, and internal and external paths to market, to discover and realize innovative opportunities. This approach to innovation is called Open Innovation (OI). The Open Innovation model can be compared with the traditional, closed model in which enterprises generate, develop and market their own ideas, usually organised in an internal R&D department. Many researches on OI has demonstrated that partnering for innovation stimulates creativity, reduces risk in the innovation process, accelerates or upgrades the quality of the innovations made, and signal the quality of firms’ innovation activities. Engagement with OI may therefore involve purely inbound OI, where technology and knowledge move from outside to inside the firm, outbound OI where technology and knowledge move from inside the firm to the outside, or both. The paper tries to investigate the potential of OI and use of OI in Indian companies making them globally competitive.