How user innovations become commercial products: A theoretical investigation and case study |
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Authors: | Carliss Baldwin |
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Institution: | a Harvard Business School, Boston, MA, United States b Copenhagen Business School, Copenhagen, Denmark, and Vienna University of Economics and Business Administration, Vienna, Austria c MIT Sloan School of Management, Cambridge, MA, United States |
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Abstract: | 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. |
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Keywords: | User innovation Communities Dominant design Industry evolution Real options |
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