The shift to open innovation model

Scientists from MIT and Harvard, state the increasing shift from producer innovation to open innovation in many parts of the economy; a relevant change desirable in what respect to social welfare  and thus worthly of further support by policymakers

Dr. C. Baldwin and Dr. E. von Hippel assess through a working paper of the Harvard business School, the economic viability of innovation by producers relative to two increasingly important alternative models: innovations by single user individuals or firms, and open collaborative innovation projects. 

The design costs and architectures and communication costs -an important factor- associated with each model is analyzed,  concluding that innovation by individual users and also open collaborative innovation increasingly compete with – and may displace– producer innovation in many parts of the economy.

The investigators finally argue that a transition from producer innovation to open single user and open collaborative innovation is desirable in terms of social welfare, and so worthy of support by policymakers.

For further detail please download the related investigation paper: Modeling a Paradigm Shift: From Producer Innovation to User and Open Collaborative Innovation