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April 2006
6 x 9, 216 pp., 18 illus.
$18.95/£11.95 (PAPER)
Trade

ISBN-10:
0-262-72047-7
ISBN-13:
978-0-262-72047-2

Other Editions
Cloth (2005)
Related Links
Author websiteOpen this site in a new browser window.
Electronic Version (Available under a Creative Commons License)
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Interview with Eric von Hippel
Democratizing Innovation
Eric von Hippel

Table of Contents and Sample Chapters

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 system of user-centered innovation. 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. Von Hippel's many examples of user innovation in action range from surgical equipment to surfboards to software security features. 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 that they should systematically seek out innovations developed by users. He points to businesses—the custom semiconductor industry is one example—that have learned to assist user-innovators by providing them with toolkits for developing new products. 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. The goal of a democratized user-centered innovation system, says von Hippel, is well worth striving for. An electronic version of this book is available under a Creative Commons license.

About the Author

Eric von Hippel is Professor of Management of Innovation and Head of the Innovation and Entrepreneurship Group at the MIT Sloan School of Management. He is the author of The Sources of Innovation.


Reviews

"Von Hippel presents a persuasive case for the benefits of encouraging lead users to innovate and a truly intriguing look at what they’ve contributed to the world so far".
BizEd

"This is a book that should be required reading for every person in every automotive company who is involved in product development, be they marketers or engineers, manufacturers or managers. It is that important."
Automotive Design and Production

"The book puts its thesis well, with plenty of examples.
Financial Review (Australia)

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Endorsements

"Eric von Hippel has written a genuinely important book on innovation. Combining a wealth of case studies and data with a clear and systematically developed theoretical framework, Democratizing Innovation turns much of how we think about innovation economics on its head. Von Hippel has provided us with a fascinating book that will challenge innovation theorists and businesses alike."
Yochai Benkler, Professor of Law, Yale Law School

"Every manager concerned with growth and innovation should read this book. It explains how companies can replace a broken innovation paradigm with refreshingly effective and efficient methods for finding new growth products and markets."
Clayton M. Christensen, Harvard Business School, author of The Innovator's Dilemma

"This is an important and original perspective on the neglected role of the user in the innovation process. Von Hippel extends his pathbreaking research on lead-user innovation by showing the economic benefits gained by opening new-product development to the natural insights and inventiveness of the market. No one managing product development in established or emerging industries can afford to ignore the power and value of involving users in the innovation process."
Andrew Hargadon, author of How Breakthroughs Happen: The Surprising Truth about How Companies Innovate

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Economics, Finance, and Business
 Information Technology
 Innovation Policy
 
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