Managing the Innovation Mix - Arie Goldshlager's posterous

1) The Innovation Mix

According to Carliss Y. Baldwin and Eric von Hippel, the Innovation paradigm is shifting from “Producer Innovation to User and Open Collaborative Innovation”.  During the shift, Companies will manage a Mix of Producer Innovation, Open Innovation, and End-User Innovation.  Note particularly Figure 3 of the working paper:

http://www.hbs.edu/research/pdf/10-038.pdf

http://hbswk.hbs.edu/item/6325.html

2) End-User Innovation

End-User Innovation will become more and more prevalent, particularly when the design costs are low.  In financial services, for example, users self-provided 85% of functionally novel and important commercial and retail banking services before any bank offered them:

http://ariegoldshlager.posterous.com/users-as-service-innovators-the-case-of-banki

3) Accidental Innovation

Robert Austin adds Accidental Innovation to the Mix: “Companies spend many hundreds of billions of dollars on R&D each year, but the microwave oven was conceived from a melted candy bar, saccharin from an accidental chemical spill, and the Daguerre photo process via a shattered thermometer. Accidents happen—and we're all better off because they do.

In their recent working paper "Accident, Innovation, and Expectation in Innovation Process," authors Robert D. Austin and Lee Devin explore the concept of accidental innovation, how it works or doesn't, and how good accidents can be encouraged.”

http://hbswk.hbs.edu/item/5441.html

Essentials on Innovation all in a post. Enjoy!

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