Democratizing Innovation

The process of user-centered innovation: how it can benefit both users and manufacturers and how its emergence will bring changes in business models and in public policy. Innovation is rapidly becoming democratized. Users, aided by improvements in computer and communications technology, increasingly can develop their own new products and services. These innovating users—both individuals and firms—often freely share their innovations with others, creating user-innovation communities and a rich intellectual commons. In Democratizing Innovation, Eric von Hippel looks closely at this emerging system of user-centered innovation. He explains why and when users find it profitable to develop new products and services for themselves, and why it often pays users to reveal their innovations freely for the use of all.The trend toward democratized innovation can be seen in software and information products—most notably in the free and open-source software movement—but also in physical products. Von Hippel's many examples of user innovation in action range from surgical equipment to surfboards to software security features. He shows that product and service development is concentrated among "lead users," who are ahead on marketplace trends and whose innovations are often commercially attractive. Von Hippel argues that manufacturers should redesign their innovation processes and that they should systematically seek out innovations developed by users. He points to businesses—the custom semiconductor industry is one example—that have learned to assist user-innovators by providing them with toolkits for developing new products. User innovation has a positive impact on social welfare, and von Hippel proposes that government policies, including R&D subsidies and tax credits, should be realigned to eliminate biases against it. The goal of a democratized user-centered innovation system, says von Hippel, is well worth striving for. An electronic version of this book is available under a Creative Commons license.

Innovation is rapidly becoming democratized. Users, aided by improvements in computer and communications technology, increasingly can develop their own new products and services. Eric von Hippel looks closely at this emerging system of user-centred innovation.

Innovation is rapidly becoming democratized. Users, aided by improvements in computer and communications technology, increasingly can develop their own new products and services. Eric von Hippel looks closely at this emerging system of user-centred innovation.

The process of user-centered innovation: how it can benefit both users and manufacturers and how its emergence will bring changes in business models and in public policy. Innovation is rapidly becoming democratized. Users, aided by improvements in computer and communications technology, increasingly can develop their own new products and services. These innovating users—both individuals and firms—often freely share their innovations with others, creating user-innovation communities and a rich intellectual commons. In Democratizing Innovation, Eric von Hippel looks closely at this emerging system of user-centered innovation. He explains why and when users find it profitable to develop new products and services for themselves, and why it often pays users to reveal their innovations freely for the use of all.The trend toward democratized innovation can be seen in software and information products—most notably in the free and open-source software movement—but also in physical products. Von Hippel's many examples of user innovation in action range from surgical equipment to surfboards to software security features. He shows that product and service development is concentrated among "lead users," who are ahead on marketplace trends and whose innovations are often commercially attractive. Von Hippel argues that manufacturers should redesign their innovation processes and that they should systematically seek out innovations developed by users. He points to businesses—the custom semiconductor industry is one example—that have learned to assist user-innovators by providing them with toolkits for developing new products. User innovation has a positive impact on social welfare, and von Hippel proposes that government policies, including R&D subsidies and tax credits, should be realigned to eliminate biases against it. The goal of a democratized user-centered innovation system, says von Hippel, is well worth striving for. An electronic version of this book is available under a Creative Commons license.

A leading innovation scholar explains the growing phenomenon and impact of free innovation, in which innovations developed by consumers and given away “for free.” In this book, Eric von Hippel, author of the influential Democratizing Innovation, integrates new theory and research findings into the framework of a “free innovation paradigm.” Free innovation, as he defines it, involves innovations developed by consumers who are self-rewarded for their efforts, and who give their designs away “for free.” It is an inherently simple grassroots innovation process, unencumbered by compensated transactions and intellectual property rights. Free innovation is already widespread in national economies and is steadily increasing in both scale and scope. Today, tens of millions of consumers are collectively spending tens of billions of dollars annually on innovation development. However, because free innovations are developed during consumers' unpaid, discretionary time and are given away rather than sold, their collective impact and value have until very recently been hidden from view. This has caused researchers, governments, and firms to focus too much on the Schumpeterian idea of innovation as a producer-dominated activity. Free innovation has both advantages and drawbacks. Because free innovators are self-rewarded by such factors as personal utility, learning, and fun, they often pioneer new areas before producers see commercial potential. At the same time, because they give away their innovations, free innovators generally have very little incentive to invest in diffusing what they create, which reduces the social value of their efforts. The best solution, von Hippel and his colleagues argue, is a division of labor between free innovators and producers, enabling each to do what they do best. The result will be both increased producer profits and increased social welfare—a gain for all.

Managers often isolate their innovation teams, but wouldn’t it be better to engage all the workers in innovation? This book describes a framework that makes innovation a daily consideration for all. It involves allowing a knowledge network to develop naturally which complements the existing organizational structure making it more organic. It fosters more extensive collaboration amongst workers to produce more imaginative solutions that maximize value. The workers are encouraged to consult one another spontaneously across their organization and beyond its traditional boundaries. Insightful and constructive exchanges stimulate their thinking making them creative partners. Unsuspected capabilities, ideas and value are revealed. Philippe Davidson describes creative deliberation techniques designed to maximize stakeholder value. The framework also makes organizations nimbler and more resilient to market changes. They become more sustainable in ever-changing conditions because learning and change become the norm. Innovation champions will find powerful arguments for introducing democratized innovation in their organizations. A wealth of practical techniques and handy tips for participative work-based training will help organizational trainers and facilitators to democratize innovation. Management consultants will find invaluable insights to advise their clients on innovation. Your workers are your organization’s best agents of change - unleash their natural creativity!

A wake-up call for America to create a new framework for democratizing data. Public data are foundational to our democratic system. People need consistently high-quality information from trustworthy sources. In the new economy, wealth is generated by access to data; government's job is to democratize the data playing field. Yet data produced by the American government are getting worse and costing more. In Democratizing Our Data, Julia Lane argues that good data are essential for democracy. Her book is a wake-up call to America to fix its broken public data system.

Managers often isolate their innovation teams, but wouldn’t it be better to engage all the workers in innovation? This book describes a framework that makes innovation a daily consideration for all. It involves allowing a knowledge network to develop naturally which complements the existing organizational structure making it more organic. It fosters more extensive collaboration amongst workers to produce more imaginative solutions that maximize value. The workers are encouraged to consult one another spontaneously across their organization and beyond its traditional boundaries. Insightful and constructive exchanges stimulate their thinking making them creative partners. Unsuspected capabilities, ideas and value are revealed. The author of this book describes creative deliberation techniques designed to maximize stakeholder value. The framework also makes organizations nimbler and more resilient to market changes. They become more sustainable in ever-changing conditions because learning and change become the norm. Innovation champions will find powerful arguments for introducing democratized innovation in their organizations. A wealth of practical techniques and handy tips for participative work-based training will help organizational trainers and facilitators to democratize innovation. Management consultants will find invaluable insights to advise their clients on innovation. Your workers are your organization’s best agents of change. Unleash their natural creativity. Let’s get started!