Post by account_disabled on Jan 1, 2024 2:24:22 GMT -5
To stimulate and manage external innovation. Specifically, should external innovators be organized as collaborative communities or competitive markets? Collaborative communities are perhaps best known for foundations and other open source software, which are loosely governed by social norms and soft rules to encourage open access to information, transparency, joint development, and sharing of intellectual property. One notable aspect of the community is that members are often willing to work for free. Competitive markets are very different. Rather than collaborating, external innovators in the market develop multiple competing, complementary goods, then choose from different products. The classic example here is the multibillion-dollar video game industry, in which companies (such as Nintendo) develop hardware consoles ( ) and encourage third-party businesses to write game software for the platform. In the market, external innovators are busy focusing on their own economic interests, which often leads to fierce competition among them and little cooperation.
Fundamental Innovation Insights This article was selected as one of the Fundamental Innovation Insights in the MIT Sloan Management Review archives. Read More Because the dynamics of communities and markets differ significantly (see Markets vs. Communities), companies need to carefully Job Function Email List consider which approach will best achieve their goals. Based on our research, we’ve identified three key questions managers should consider when making decisions. Specifically, the discussion must focus on: ( ) the types of innovation that will be transferred to external innovators, ( ) the motivations of these individuals, and ( ) the nature of the platform’s business model.
About the author Kevin Boudreau is Assistant Professor of Strategy at London Business School. Karim Lakhani is an Assistant Professor and Richard Hodgson Fellow at Harvard Business School. References Economist Friedrich Hayek's ( ) long-held insights into distributed knowledge in the economy have been embraced and developed in modern open innovation research. See, for example, Democratizing Innovation (Cambridge: MIT Press, 2016); and show that of open source software developers volunteer their time and effort into various projects. See and, Why Hackers Do It: Understanding.
Fundamental Innovation Insights This article was selected as one of the Fundamental Innovation Insights in the MIT Sloan Management Review archives. Read More Because the dynamics of communities and markets differ significantly (see Markets vs. Communities), companies need to carefully Job Function Email List consider which approach will best achieve their goals. Based on our research, we’ve identified three key questions managers should consider when making decisions. Specifically, the discussion must focus on: ( ) the types of innovation that will be transferred to external innovators, ( ) the motivations of these individuals, and ( ) the nature of the platform’s business model.
About the author Kevin Boudreau is Assistant Professor of Strategy at London Business School. Karim Lakhani is an Assistant Professor and Richard Hodgson Fellow at Harvard Business School. References Economist Friedrich Hayek's ( ) long-held insights into distributed knowledge in the economy have been embraced and developed in modern open innovation research. See, for example, Democratizing Innovation (Cambridge: MIT Press, 2016); and show that of open source software developers volunteer their time and effort into various projects. See and, Why Hackers Do It: Understanding.