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- Alfonso Gambardella & Christina Raasch & Eric von Hippel (2017): The User Innovation Paradigm: Impacts on Markets and Welfare
Innovation has traditionally been seen as the province of producers. ... We explain the conditions under which firms find it beneficial to invest in supporting and harvesting users’ innovations, and we show that social welfare rises when firms utilize this source of innovation. Our modeling also indicates reasons for policy interventions with respect to a mixed user and producer innovation economy. From the social welfare perspective, as the share of innovating users in a market increases, profit-maximizing firms tend to switch “too late” from a focus on internal research and development to a strategy of also supporting and harvesting user innovations. ... Overall, our results explain when and how the proliferation of innovating users leads to a superior division of innovative labor involving complementary investments by users and producers, both benefitting producers and increasing social welfare.
RePEc:inm:ormnsc:v:63:y:2017:i:5:p:1450-1468 Save to MyIDEAS - Alfonso Gambardella & Eric von Hippel (2019): Open Sourcing as a Profit-Maximizing Strategy for Downstream Firms
This paper characterizes and explores a corporate strategy in which downstream firms collaborate to develop open substitute designs for proprietary hardware they would otherwise purchase from upstream suppliers. This strategy centrally involves the downstream firms distributing design costs over multiple downstream firms—a strategy that is routine to producers selling to multiple downstream firms but which has been in the past typically not practical for coalitions of downstream firms. Today, downstream firms find it increasingly feasible to codesign products they may all purchase because of two technological trends. First, computer-aided design/computer-aided manufacturing and other design technologies are lowering downstream firms’ costs to develop designs for purchased hardware inputs. Second, better communication technologies are lowering the costs of doing such projects collaboratively, even among large groups of downstream customer firms.
RePEc:inm:orstsc:v:4:y:2019:i:1:p:41-57 Save to MyIDEAS - Fursov, Konstantin & Linton, Jonathan (2022): Social innovation: Integrating product and user innovation
The paper introduces a conceptual approach explaining how end users, user communities and /or for-profit firms provide benefits to society through new product or service development. We show that innovation may occur in different economic environments including non-market ones as well as that social innovation will not occur on its own in a purely producer for-profit environment. To explain such cases, we suggest integrating product and user innovation paradigms into the Producer-User Social Innovation (PUSI) Model that demonstrates how infrastructure and enabling technology is provided either by producer or user to introduce new market product or service. ... These illustrative examples allowed to provide evidence that user-driven innovation is socially oriented in its nature as it implicitly addresses community or societal needs. In addition to providing insights into the nature of social innovation, the model can be utilized to help understand why social innovation may fail and how to increase the likelihood of success by engaging with appropriate for-profit producers, communities, and users.
RePEc:eee:tefoso:v:174:y:2022:i:c:s0040162521006570 Save to MyIDEAS