Free Innovation

by Eric von Hippel

A leading innovation scholar explains the growing phenomenon and impact of free innovation, in which innovations developed by consumers and given away “for free.” In this book, Eric von Hippel, author of the influential Democratizing Innovation , integrates new theory and research findings into the framework of a “free innovation paradigm.” Free innovation, as he defines it, involves innovations developed by consumers who are self-rewarded for their efforts, and who give their designs away “for free.” It is an inherently simple grassroots innovation process, unencumbered by compensated transactions and intellectual property rights. Free innovation is already widespread in national economies and is steadily increasing in both scale and scope. Today, tens of millions of consumers are collectively spending tens of billions of dollars annually on innovation development. However, because free innovations are developed during consumers' unpaid, discretionary time and are given away rather than sold, their collective impact and value have until very recently been hidden from view. This has caused researchers, governments, and firms to focus too much on the Schumpeterian idea of innovation as a producer-dominated activity. Free innovation has both advantages and drawbacks. Because free innovators are self-rewarded by such factors as personal utility, learning, and fun, they often pioneer new areas before producers see commercial potential. At the same time, because they give away their innovations, free innovators generally have very little incentive to invest in diffusing what they create, which reduces the social value of their efforts. The best solution, von Hippel and his colleagues argue, is a division of labor between free innovators and producers, enabling each to do what they do best. The result will be both increased producer profits and increased social welfare—a gain for all.

Genres: Business, Economics, Design

244 pages, Kindle Edition

Published November 10, 2016

Reviews

[Marcio Galli · Rating 5 out of 5]

I stumbled in this book title when I wrote to Eric von Hippel in an attempt to learn a point from Innovator's Dilemma. Eric suggested his own reading and it was life changing. Made me think of Mozilla in some parts of the book but of course Eric's framework is a broader thing.

[Emma · Rating 4 out of 5]

Von Hippel did an incredible job with this book. He's quite good at explaining complex ideas without dumbing them down. I enjoyed his borrowing from and references to other disciplines-- particularly his "innovation wetland" theory-- and think this book could eventually prove to be foundational reading in microeconomic theory.

My one gripe (if you could even call it that) is that I would've liked to read more about von Hippel's methodology in the various studies he describes. He gives good but brief explanations within each chapter, and offers the actual questionnaires he used to collect data in the appendices. All this excellent, but I would've liked more insight into why he and his fellow researchers chose the approaches they did, the limitations of their choices, and how they determined those limitations. It's not missing from the text so much as it is softened, for the sake of the reader. Von Hippel is quite gifted at giving explanations, however, and so I think he would've been able to provide a meatier explanation of his analysis without forsaking the layman's ability to understand.

[Charlene · Rating 3 out of 5]

I was excited about this book because I love innovation and am always interested in the motivations behind various innovations. This book certainly takes a deep look into what motivates free innovators (those who innovate to fulfill their own need but end up filling a larger need in the general public). While it offers some great insights, it really reads like a dissertation and takes some effort to get through.

[Jim]

listened to this as an audiobook. too academic for my taste. I abandoned it.