Innovation has traditionally been seen as the province of producers. However, theoretical and empirical research now shows that individual users – consumers – are also a major and increasingly important source of new product and service designs. In this paper, we build a microeconomic model...

When economists and innovation practitioners think about whether developing an innovation will be worthwhile, they tend to think exclusively about the economic value of the outcome of the innovation process. In this article, we develop and explore the idea that innovators can also gain...

Empirical studies have shown that millions of individual users develop new products and services to serve their own needs. The economic impact of this phenomenon increases if and as adopters in addition to the initial innovators also gain benefits from those user-developed innovations. It has...