How user innovations become commercial products: A theoretical investigation and case study

In this paper we model the pathways commonly traversed as user innovations are transformed into commercial products. First, one or more users recognize a new set of design possibilities and begin to innovate. They then join into communities, motivated by the increased efficiency of collective innova...

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Bibliographic Details
Published in:Research policy 2006-11, Vol.35 (9), p.1291-1313
Main Authors: Baldwin, Carliss, Hienerth, Christoph, von Hippel, Eric
Format: Article
Language:English
Subjects:
Communities
Design
Dominant design
Industry evolution
Innovation
Innovations
Manufacturers
Product design
Product development
Production costs
Real options
Studies
User innovation
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Summary:In this paper we model the pathways commonly traversed as user innovations are transformed into commercial products. First, one or more users recognize a new set of design possibilities and begin to innovate. They then join into communities, motivated by the increased efficiency of collective innovation. User-manufacturers then emerge, using high-variable/low-capital cost production methods. Finally, as user innovation slows, the market stabilizes enough for high-capital, low-variable cost manufacturing to enter. We test the model against the history of the rodeo kayak industry and find it supported. We discuss implications for “dominant design” theory and for innovation practice.
ISSN:0048-7333
1873-7625
DOI:10.1016/j.respol.2006.04.012