The impact of user innovation on social welfare isanalyzed by comparing user innovators to manufacturer innovators in terms oftheir innovation incentives and knowledge.Following a review of theliterature on product development by users, it is argued that the introductionof user innovation in a...

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...

The literature on new goods and social welfare generally assumes that innovations are developed by manufacturers. But innovation by users has been found to also be an important part of innovative activity in the economy. In this paper we explore the impact of users as a source of innovation on...

Innovation commons – which we define as repositories of freely-accessible, “open source” innovation-related information and data - are a very significant resource for innovating and innovation-adopting firms and individuals: Availability of free data and information reduces the...