The knowledge on manufacturing SMEs and Open Innovation (OI) is limited and therefore, this article describes and evaluates how manufacturing SMEs apply and benefit from OI. Based on a survey and additional financial data, 151 Swedish manufacturing SMEs were evaluated with regard to variables concerning OI application and financial performance. The conclusions are that SMEs are very open to and want to learn from new ideas outside of the firm, however mainly applying inbound OI activities. Medium-sized firms use innovation collaboration more and are less reluctant to IP appropriability regimes. Being part of a larger organization may help SMEs use patents and trademarks. Significant relationships were established between OI variables and firms with the highest and the lowest profitability. These had a common core labelled "aiming at maintaining technology leadership". Finally, no connection between applying OI activities and firm profitability could be established.