Empirical studies of innovation have found that end users frequently develop important product and process innovations. Defying conventional wisdom on the negative effects of uncompensated spillovers, innovative users also often openly reveal their innovations to competing users and to...

Many services can be self-provided. An individual user or a user firm can, for example, choose to do its own accounting – choose to self-provide that service – instead of hiring an accounting firm to provide it. Since users can ‘serve themselves’ in many cases, it is reasonable to...

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...

Currently, two models of innovation are prevalent in organization science. The “private investment” model assumesreturns to the innovator result from private goods and efficient regimes of intellectual property protection. The “collective action” model assumes that under conditions of...

A detailed survey of 498 high technology small and medium-sized enterprises in the Netherlands shows process innovation by user firms to be common practice. Fifty-four percent of these firms reported developing entirely novel process equipment or software for their own use and/or modifying...

Statistical indicators have not kept pace with innovation research. Today, it is well understood that many industrial and consumer products are developed by users, and that many innovations developed at private cost are freely shared. New statistical indicators will empower policymakers to take...

The need to economically identify rare subjects within large, poorly mapped search spaces is a frequently encountered problem for social scientists and managers. It is notoriously difficult, for example, to identify “the best new CEO for our company,” or the “best three lead users to...

Proprietary brands are a major vehicle for producer profits: consumers have been shown willing to pay a considerable "brand premium" for a branded product over an otherwise identical unbranded product. Prior literature has implicitly assumed that only producers develop brands. In this paper, we...

In this paper we report upon a first empirical exploration of the relative efficiency of innovation development by product users vs. product producers. In a study of over 50 years of product innovation in the whitewater kayaking field, we find users in aggregate were approximately 3X more...

It has been argued that users can create innovations and also diffuse them peer-to-peer independent of support or involvement by producers: that “user-only” innovation systems can exist. It is known that users can be incented to innovate via benefits from in-house use. But users’...