Carliss Baldwin, Eric von Hippel
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. We analyze the design costs and architectures and communication costs associated with each model. We conclude that both innovation by individual users and open collaborative innovation increasingly compete with and may displace producer innovation in many parts of the economy. We explain why this represents a paradigm shift with respect to innovation research, policy making, and practice. We discuss important implications and offer suggestions for further research.
Argues that producer-led innovation is ceding ground to innovation by single users and open collaborative innovation (e.g., open standards and open source). Part of the reason for this is that computing and the Internet reduced two costs relevant to these models: design and communication.
Another interesting assertion:
@[email protected] @[email protected] I‘d argue that there rarely is producer-led innovation unless you count „making it cheaper by having it produced in a poverty ridden country“.
The stronger producer companies are in a market, the less innovation happens.