Internal vs External Hackathons: Which One Is Right for You?

Jun 3

When planning a corporate hackathon, one of the first questions you’ll face is:

Should we run it internally — or open it up externally?

The answer depends on your goals, culture, and risk appetite. Let’s break it down.

🏢 What Is an Internal Hackathon?

Internal hackathons bring together employees from across departments to solve real business challenges.

They’re perfect when you want to:

✅ Surface operational and efficiency ideas
✅ Boost collaboration between silos
✅ Empower employees to drive innovation
✅ Increase engagement, morale, and ownership

When to choose it:

You’re focused on internal transformation or AI adoption
You want to build an innovation culture from the inside
You need to demonstrate quick wins to leadership

🌍 What Is an External Hackathon?

External hackathons invite startups, students, freelancers, or ecosystem partners to co-create with your brand.

They’re great when your goal is to:

✅ Tap into fresh ideas and outside expertise
✅ Test product-market fit
✅ Recruit talent or scout startups
✅ Explore use cases for your APIs, SDKs, or platforms

When to choose it:

You’re looking for disruptive ideas
You want to build buzz around your brand or tech stack
You’re running an open innovation or employer branding campaign

⚡ Hybrid = The Best of Both Worlds?

Some of the most successful formats are hybrid: internal teams work with external guests or advisors (e.g. students, startups, domain experts). This brings new energy while grounding the ideas in internal realities.

But hybrid formats require more coordination — and clarity about ownership, IP, and roles.

🚨 Pro Tip: Don’t Go External First

It’s tempting to go big, open, and flashy.

But if you haven’t aligned your internal stakeholders, processes, or post-hack pathway, even the best external ideas will fizzle.

Always prove internal alignment first. Then bring in the outsiders.

Final Thought

There’s no one-size-fits-all. But there is a right format for your strategy, your people, and your challenge.

I’ve helped dozens of companies design the right hackathon for their goals — from private energy sector sprints to multi-brand luxury innovation labs.

If you’re not sure where to start, I’d be happy to chat.

👉 Or check out my free checklist: 10 Things to Clarify Before You Plan a Corporate Hackathon

Maria Halse Duloquin

Innovation consultant and certified Design Sprint Master supporting organisations to reach purposeful goals faster, through innovation workshops. Maria has a decade of global digital marketing experience supporting consumer brand growth and has run innovation events for international corporations over the past 7 years. Find her on Twitter @MariaHalse or on LinkedIn.