How crowdfunding platforms change the nature of user innovation – from problem solving to entrepreneurship

Crowdfunding has become a key research trend in recent years providing a new form of acquiring funding for innovation projects from users prior to the realization of the product in a ‘market before the market’. In this paper, we link the concept of crowdfunding with the user innovation phenomenon an...

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Bibliographic Details
Published in:Technological forecasting & social change 2019-07, Vol.144, p.348-360
Main Authors: Brem, Alexander, Bilgram, Volker, Marchuk, Anna
Format: Article
Language:English
Subjects:
Case studies
Commercialization
Crowdfunding
Crowdfunding platform
Crowdsourcing
Entrepreneurship
Funding
Innovations
Markets
Motivation
Platforms
Problem solving
User communities
User entrepreneur
User innovation
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Summary:Crowdfunding has become a key research trend in recent years providing a new form of acquiring funding for innovation projects from users prior to the realization of the product in a ‘market before the market’. In this paper, we link the concept of crowdfunding with the user innovation phenomenon and show how user innovators harness crowdfunding to complement their innovative behavior and obtain funding to build firms and produce products in a more professional way. Conducting three case studies ranging from low- to high-tech crowdfunding campaigns, we investigate how crowdfunding impacts constituent dimensions of user innovation theory such as user motivation, user role, user community, collaboration between users and user investments. In particular, we argue that crowdfunding platforms (CFPs) may give rise to a more widespread occurrence of user entrepreneurs, who found a firm to commercialize their product or service in a marketplace they have created for their own need. Hence, we show the development from traditional user innovation to crowdfunding-enabled user innovation, which democratizes not only the creation but also the more large-scale commercialization of new products and services. [Display omitted] •Unique conceptual linkage of crowdfunding platforms with user innovation•Research on case studies ranging from low- to high-tech crowdfunding campaigns•Analysis from traditional to crowdfunding-infused/enabled user innovation•Results on how crowdfunding impacts dimensions of user innovation theory•Roles: (critical) consumer, user innovator, ‘lifestyle firm’, user entrepreneur
ISSN:0040-1625
1873-5509
DOI:10.1016/j.techfore.2017.11.020