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Welfare Implications of User Innovation

In: Essays in Honor of Edwin Mansfield

Author

Listed:
  • Joachim Henkel

    (University of Munich)

  • Eric Hippel

    (MIT Sloan School of Managent Cambridge)

Abstract

Innovation by users is now understood to be an important part of innovative activity in the economy. In this paper we explore the implications of adding innovation by users to existing models of social welfare that currently assume innovation by manufacturers only. We find this addition removes several inefficiencies, and that social welfare is likely to be increased by the presence of user innovation. Implications for policies that can impact users’ freedom to innovate are discussed.

Suggested Citation

  • Joachim Henkel & Eric Hippel, 2005. "Welfare Implications of User Innovation," Springer Books, in: Albert N. Link & F. M. Scherer (ed.), Essays in Honor of Edwin Mansfield, pages 45-59, Springer.
    • Handle: RePEc:spr:sprchp:978-0-387-25022-9_5
    DOI: 10.1007/0-387-25022-0_5
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    Citations

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    Cited by:

    1. Cinzia Battistella & Gianluca Murgia & Fabio Nonino, 2021. "Free-driven web-based business models," Electronic Commerce Research, Springer, vol. 21(2), pages 445-486, June.
    2. Jordan Robert Gamble & Michael Brennan & Rodney Mcadam, 2016. "A Contemporary And Systematic Literature Review Of User-Centric Innovation: A Consumer Perspective," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-45, January.
    3. Alireza Javanmardi Kashan & Kavoos Mohannak & Mirko Perano & Gian Luca Casali, 2018. "A Discovery of Multiple Levels of Open Innovation in Understanding the Economic Sustainability. A Case Study in the Manufacturing Industry," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    4. Du, Jingshu & Leten, Bart & Vanhaverbeke, Wim, 2014. "Managing open innovation projects with science-based and market-based partners," Research Policy, Elsevier, vol. 43(5), pages 828-840.
    5. Jeroen de Jong, 2014. "The Emperical Scope of User Innovation," Scales Research Reports H201403, EIM Business and Policy Research.
    6. Corral de Zubielqui, Graciela & Fryges, Helmut & Jones, Janice, 2019. "Social media, open innovation & HRM: Implications for performance," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 334-347.
    7. Pier Patrucco, 2008. "The economics of collective knowledge and technological communication," The Journal of Technology Transfer, Springer, vol. 33(6), pages 579-599, December.
    8. Stephen M. Maurer & Suzanne Scotchmer, 2006. "Open Source Software: The New Intellectual Property Paradigm," NBER Working Papers 12148, National Bureau of Economic Research, Inc.
    9. von Hippel, Eric, 2010. "Open User Innovation," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 411-427, Elsevier.
    10. Na, Cheongho & Kim, Eungdo & Hwang, Junseok, 2014. "Research on open innovation strategy and its performance in Korea smart media industry: Focusing on user innovation strategy," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106850, International Telecommunications Society (ITS).
    11. Nicolai J. Foss & Keld Laursen & Torben Pedersen, 2011. "Linking Customer Interaction and Innovation: The Mediating Role of New Organizational Practices," Organization Science, INFORMS, vol. 22(4), pages 980-999, August.
    12. Kleer, Robin & Piller, Frank T., 2019. "Local manufacturing and structural shifts in competition: Market dynamics of additive manufacturing," International Journal of Production Economics, Elsevier, vol. 216(C), pages 23-34.
    13. Fursov, Konstantin & Linton, Jonathan, 2022. "Social innovation: Integrating product and user innovation," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    14. Lars Bo Jeppesen & Lars Frederiksen, 2006. "Why Do Users Contribute to Firm-Hosted User Communities? The Case of Computer-Controlled Music Instruments," Organization Science, INFORMS, vol. 17(1), pages 45-63, February.
    15. Zhang, De-Peng & Yang, Chen-hui & Zhang, Feng-Hua, 2014. "Analysis of the equity preference influence in customer participation incentives," Economic Modelling, Elsevier, vol. 41(C), pages 1-8.
    16. Henkel, Joachim, 2006. "Selective revealing in open innovation processes: The case of embedded Linux," Research Policy, Elsevier, vol. 35(7), pages 953-969, September.
    17. Carolin Eckinger & M.W.J.L. Sanders, 2019. "User Innovation and Business Incubation," Working Papers 19-16, Utrecht School of Economics.
    18. Yasuhiro Arai & Shinya Kinukawa, 2014. "Copyright infringement as user innovation," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(2), pages 131-144, May.
    19. Jeroen de Jong & Eric von Hippel, 2010. "Open, distributed and user-centered: Towards a paradigm shift in innovation policy," Scales Research Reports H201009, EIM Business and Policy Research.

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