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Distributed Perspectives on Innovation: Open Innovation,  User Innovation and Beyond Joel West blog.OpenInnovation.net San José State University New Forms of Collaborative Production and Innovation Georg-August-Universit ä t G öttingen May 5, 2010
Today’s Story ,[object Object],[object Object],[object Object],[object Object]
What is “Innovation”?
Defining “Innovation” ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Bogers & West (2010)
Latent value of an innovation ,[object Object],[object Object],[object Object]
Invention vs. Innovation ,[object Object],[object Object]
Non-commercial Application ,[object Object],[object Object]
Vertically Integrated R&D Research Investigations Development New Products & Services The Market Science & Technology Base Source: Chesbrough (2006)
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Vertical Integration
Distributed *  Perspectives on Innovation *  i.e. O/U/CI
Value Network Suppliers Focal Firm Comple- mentors Users Rivals
Sources of Innovation X  = Sources of Innovation; † limited emphasis   Source: West (2009) Focal Firm Suppliers Customers Rivals Vertical integration X User innovation X † X Cumulative innovation X X Open innovation X X X X
User Innovation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Free vs. Paid Revealing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cumulative Innovation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Three Cumulative Patterns ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Scotchmer (2004)
Open Innovation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
R&D under Open Innovation Source: Chesbrough (2006) Current Market Internal Technology Base Technology Insourcing New  Market Technology Spin-offs External Technology Base Other Firm’s  Market Licensing “ Open” innovation strategies
Key Issues for Open Innovation ,[object Object],[object Object],[object Object],R&D Firm Ideas Products Licensees Licensors Motivating Incorporating Maximizing 2 3 1 Source: West & Gallagher (2006)
Related Innovation Models ,[object Object],[object Object],[object Object],[object Object],[object Object]
Creative Industries ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Similarities Across O/U/CI
Dispersal of Knowledge ,[object Object],[object Object]
Other Similarities ,[object Object],[object Object],[object Object],[object Object],Source: Bogers & West (2010)
Contrasting Modes of Commercialization
Innovation Flows Suppliers Focal Firm Comple- mentors Users Rivals Open Innovation User Innovation Cumulative Innovation all forms
O/U/CI innovation modes #1-5 Source: West & Bogers (2010) Knowledge leaks between competitors CI-rival Rivalrous Innovators share knowledge CI-share Cooperative Cumulative innovation Others commercialize the firm’s innovations OI-outbound Inside-out Firm commercializes others’ innovations OI-inbound Outside-in Open innovation Firm commercializes own innovations VII Vertically inte-grated innovation Vertical integration Commercialization Path Abbrev. Innovation Mode Research Stream
O/U/CI innovation modes #6-9 Self commercialization UI-startup User entrepreneurship Non-commercial diffusion UI-share User sharing Enhances own utility, but not diffused UI-self User self-help By producers UI-input Lead users User innovation Commercialization Path Abbrev. Innovation Mode Research Stream
Antecedents for Selecting Modes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Distinct Commercialization Paths Source: West & Bogers (2010) inside focal firm outside focal firm inside focal firm outside focal firm creation commercialization VII OI-outbound OI-inbound UI-input UI-startup user-generated content crowd sourcing UI-share   open science innovation communities free software business ecosystems CI-rival CI-share co-creation
Communities
Importance of Communities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Communities in OI ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: West & Lakhani (2008)
Communities as Third Mode ,[object Object],[object Object],[object Object],[object Object],Source: Enkel, Gassmann, Chesbrough (2009)
Communities in OI (3) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Fichter (2009)
Are  Fir ms Only “Open Enough”? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Academic Controversies
Why So Many Germans*? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],* Plus of course German-speaking Swiss and Austrians
Ambiguous Classifications Some phenomena might be UI, OI or VI Phenomenon It’s UI Not UI User entrepreneurs Users have knowledge VI: integrated firm User generated content Users have knowledge OI: Not solving own problem; often paid Open source “ scratching an itch” OI: “pooled R&D”
What About Acquisitions? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why does classification matter? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Emerging Patterns of Practice
Learning from Observation ,[object Object],[object Object]
Is ICT Vertical Integration Dead? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Is OI a Substitute or Complement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Monetizing Knowledge Flows ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conclusions
Summary ,[object Object],[object Object],[object Object],[object Object],[object Object]
Future Research ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Danke sehr! ,[object Object],[object Object]

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Distributed Perspectives on Innovation

  • 1. Distributed Perspectives on Innovation: Open Innovation, User Innovation and Beyond Joel West blog.OpenInnovation.net San José State University New Forms of Collaborative Production and Innovation Georg-August-Universit ä t G öttingen May 5, 2010
  • 2.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. Vertically Integrated R&D Research Investigations Development New Products & Services The Market Science & Technology Base Source: Chesbrough (2006)
  • 9.
  • 10. Distributed * Perspectives on Innovation * i.e. O/U/CI
  • 11. Value Network Suppliers Focal Firm Comple- mentors Users Rivals
  • 12. Sources of Innovation X = Sources of Innovation; † limited emphasis Source: West (2009) Focal Firm Suppliers Customers Rivals Vertical integration X User innovation X † X Cumulative innovation X X Open innovation X X X X
  • 13.
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  • 15.
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  • 18. R&D under Open Innovation Source: Chesbrough (2006) Current Market Internal Technology Base Technology Insourcing New Market Technology Spin-offs External Technology Base Other Firm’s Market Licensing “ Open” innovation strategies
  • 19.
  • 20.
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  • 25. Contrasting Modes of Commercialization
  • 26. Innovation Flows Suppliers Focal Firm Comple- mentors Users Rivals Open Innovation User Innovation Cumulative Innovation all forms
  • 27. O/U/CI innovation modes #1-5 Source: West & Bogers (2010) Knowledge leaks between competitors CI-rival Rivalrous Innovators share knowledge CI-share Cooperative Cumulative innovation Others commercialize the firm’s innovations OI-outbound Inside-out Firm commercializes others’ innovations OI-inbound Outside-in Open innovation Firm commercializes own innovations VII Vertically inte-grated innovation Vertical integration Commercialization Path Abbrev. Innovation Mode Research Stream
  • 28. O/U/CI innovation modes #6-9 Self commercialization UI-startup User entrepreneurship Non-commercial diffusion UI-share User sharing Enhances own utility, but not diffused UI-self User self-help By producers UI-input Lead users User innovation Commercialization Path Abbrev. Innovation Mode Research Stream
  • 29.
  • 30. Distinct Commercialization Paths Source: West & Bogers (2010) inside focal firm outside focal firm inside focal firm outside focal firm creation commercialization VII OI-outbound OI-inbound UI-input UI-startup user-generated content crowd sourcing UI-share open science innovation communities free software business ecosystems CI-rival CI-share co-creation
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 38.
  • 39. Ambiguous Classifications Some phenomena might be UI, OI or VI Phenomenon It’s UI Not UI User entrepreneurs Users have knowledge VI: integrated firm User generated content Users have knowledge OI: Not solving own problem; often paid Open source “ scratching an itch” OI: “pooled R&D”
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Notas del editor

  1. Franke’s term
  2. Also, the other counterpoint is the vertically integrated model, where in order to do anything, you have to do everything.
  3. Franke’s term
  4. This is the sources of innovation diagram shown as a value network/ecosystem diagram
  5. Franke’s term
  6. This is the sources of innovation diagram shown as a value network/ecosystem diagram
  7. Overlapping commercialization modes, notably OI-inbound and UI-input New commercialization modes not previously studied For specific phenomena, an opportunity to differentiate overlapping but distinct innovation modes