Modeling a Paradigm Shift: From Producer Innovation to User and Open Collaborative Innovation
Carliss Y. Baldwin
Harvard Business School, Finance Unit
Eric A. von Hippel
Massachusetts Institute of Technology (MIT) - Sloan School of Management
Harvard Business School Finance Working Paper No. 10-038
MIT Sloan Research Paper No. 4764-09
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, policymaking, and practice. We discuss important implications and offer suggestions for further research.
Original November 2009. This revision 2010.
Number of Pages in PDF File: 37
Date posted: November 9, 2009 ; Last revised: June 10, 2012