Abstract
In this paper 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. 41 pages.
Earmarked for later reading – George Siemens recommended it here:
“it’s a good article encouraging organizations to experiment with openness as a model of innovation: “evidence has now accumulated that innovators who elect to freely reveal their innovations, can gain significant private benefits – and also avoid some private costs.”
The article then goes on to explore three innovation models: single user, producer, and open innovation. The paper exhibits an appreciation for formulas that is generally only found in papers trying to make an economic point. Reduce all ideas to formulas. Produce many graphs and images. Feel good about clarifying concepts for the masses.”
Hi,
Sorry to be dumb, this paper sounds interesting but I do not see a link to download it.
Where can it be found?
Thanks
Olisb
No problem, you had to click through to get to the Working Knowledge site (from here to George Siemens, then onward …) – here’s the link to the actual pdf of the paper: http://www.hbs.edu/research/pdf/10-038.pdf
Cheers,
Martin