Section 8: Models of the sources of innovation
Baldwin, C. Y., Hienerth, C., & von Hippel, E. (2006). How user innovations become commercial products: A theoretical investigation and case study. Research Policy, 35(9), 1291-1313 (PDF)
Abstract: In this paper we model the pathways commonly traversed as user innovations are transformed into commercial products. First, one or more users recognize a new set of design possibilities and begin to innovate. They then join into communities, motivated by the increased efficiency of collective innovation. User-manufacturers then emerge, using high-variable/low-capital cost production methods. Finally, as user innovation slows, the market stabilizes enough for high-capital, low-variable cost manufacturing to enter. We test the model against the history of the rodeo kayak industry and find it supported. We discuss implications for “dominant design” theory and for innovation practice.
Baldwin, C. Y., & von Hippel, E. A. (2009). Modeling a Paradigm Shift: From Producer Innovation to User and Open Collaborative Innovation. Working Paper, Cambridge, Massachusetts: MIT Sloan School of Management. Retrieved December 23, 2009, from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1502864 (PDF)
Abstract: per we assess the economic viability of innovation by producers relative to two increasingly important alternative models: innovations by single user individuals or firms, and open collaborative innovation projects. We analyze the design costs and architectures and communication costs associated with each model. We conclude that innovation by individual users and also open collaborative innovation increasingly compete with - and may displace – producer innovation in many parts of the economy. We argue that a transition from producer innovation to open single user and open collaborative innovation is desirable in terms of social welfare, and so worthy of support by policymakers.