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User community vs. producer innovation development efficiency: A first empirical study

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  • Hienerth, Christoph
  • von Hippel, Eric
  • Berg Jensen, Morten

Abstract

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 3× more efficient at developing important kayaking product innovations than were producers in aggregate. We speculate that this result is driven by what we term “efficiencies of scope” in problem-solving. These can favor an aggregation of many user innovators, each spending a little, over fewer producer innovators benefitting from higher economies of scale in product development. We also note that the present study explores only one initial point on what is likely to be a complex efficiency landscape.

Suggested Citation

  • Hienerth, Christoph & von Hippel, Eric & Berg Jensen, Morten, 2014. "User community vs. producer innovation development efficiency: A first empirical study," Research Policy, Elsevier, vol. 43(1), pages 190-201.
    • Handle: RePEc:eee:respol:v:43:y:2014:i:1:p:190-201
    DOI: 10.1016/j.respol.2013.07.010
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    References listed on IDEAS

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    1. Christina Raasch & Cornelius Herstatt & Phillip Lock, 2010. "The Dynamics Of User Innovation: Drivers And Impediments Of Innovation Activities," World Scientific Book Chapters, in: Stephen Flowers & Flis Henwood (ed.), Perspectives On User Innovation, chapter 3, pages 35-56, World Scientific Publishing Co. Pte. Ltd..
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    6. Baldwin, Carliss & Hienerth, Christoph & von Hippel, Eric, 2006. "How user innovations become commercial products: A theoretical investigation and case study," Research Policy, Elsevier, vol. 35(9), pages 1291-1313, November.
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    8. Lars Bo Jeppesen & Karim R. Lakhani, 2010. "Marginality and Problem-Solving Effectiveness in Broadcast Search," Organization Science, INFORMS, vol. 21(5), pages 1016-1033, October.
    9. Robert Tietz & Pamela D. Morrison & Christian Luthje & Cornelius Herstatt, 2005. "The process of user-innovation: a case study in a consumer goods setting," International Journal of Product Development, Inderscience Enterprises Ltd, vol. 2(4), pages 321-338.
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