Technological Innovation and Social Change

Eric Von Hippel's Homepage: ""
Eric von Hippel's new book, available free online!!
Overview:
"Innovation is rapidly becoming democratized. Users, aided by
improvements in computer and communications technology, increasingly can
develop their own new products and services. These innovating users--both
individuals and firms--often freely share their innovations with others,
creating user-innovation communities and a rich intellectual commons. In
Democratizing Innovation, Eric von Hippel looks closely at this emerging
user-centered innovation system. He explains why and when users find it
profitable to develop new products and services for themselves, and why it
often pays users to reveal their innovations freely for the use of all.
The trend toward democratized innovation can be seen in software and
information products--most notably in the free and open-source software
movement--but also in physical products. He shows that product and service
development is concentrated among "lead users," who are ahead on
marketplace trends and whose innovations are often commercially
attractive. Von Hippel argues that manufacturers should redesign their
innovation processes and systematically seek out innovations developed by
users. User innovation has a positive impact on social welfare, and von
Hippel proposes that government policies, including R&D subsidies and tax
credits, should be realigned to eliminate biases against it."