Transcript [TITLE WITH CAPITAL LETTERS]

MAY 2013
Efterspørgselsdrevet innovation
og entrepreneurskab
Hvad skal Danmark leve af?
Prof. Lars Frederiksen, Ph.d.
Institut for Marketing og Organisation, BSS, AU
MAY 2013
Formål og struktur
› Inspiration – ingen direkte industrinære anvisninger
› Ny åbenhed i innovationsprocesser?
› Bruger-innovation og –entrepreneurskab
MAY 2013
Hvem er jeg
› Professor, Institut for Marketing og Organisation, forskningsleder af Innovation Management Group
› Tidligere 5 år på Imperial College Business School, London
› PhD fra Copenhagen Business School (INO) (2006): “Open Innovation Business Models”
› Research fokus: hvordan nye ideer og viden skabes og deles for innovation i projekter,
fællesskaber og organisationer
› Brugere som innovatorer: Individuelle karakteristika, sociale netværk og entrepreneurskab i
fællesskaber (Jeppesen & Frederiksen, 2006; Dahlander & Frederiksen, 2012; Dahlander,
Frederiksen & Rullani, 2008; Foss, Frederiksen & Rullani, 2012)
› Two-sided markets
› Software/OSS
› ‘Capability renewal/replication/reinforcement’, vidensskabelse og -deling under forskellige
styringssystemer (Frederiksen & Davies, 2008; Cattani, Ferriani, Frederiksen & Täube, 2011;
Hartmann, Davies & Frederiksen, 2010)
› Bæredygtigt urbant design, energi, vand, og veje
› Entrepreneurskab (opstart, overlevelse og vækst), arbejdsmarkedsmobilitet og
ansættelsesstrategi (Frederiksen & Wennberg, 2012; Frederiksen & Frederiksen, 2012)
› Sverige og Danmark
MAY 2013
Innovationsledelse og -strategi
› Innovation: Succesfuld kommercialisering af nye og
brugbare ideer og opfindelser
› Multidisciplinær: Social psykologi, sociologi,
organisationsøkonomi, ingeniørvidenskab, ledelse og
marketing
› Kernespørgsmål:
› Hvordan søges bedst efter information, ideer og talent?
› Hvordan udvælges og organiseres processen fra idegenerering til
kommercialisering og videre mod spredning af nye produkter, services
og teknologier?
› Innovationsledelse handler således om værdiskabelse gennem videngenerering og –deling.
MAY 2013
Innovation som kilde til vækst
Schumpeter (1942):
“The competition from the new
commodity, the new technology, the new
source of supply, the new type of
organization … competition which
commands a decisive cost or quality
advantage and which strikes not at the
margins of the profits and the outputs of
the existing firms but at their foundations
and their very lives”.
MAY 2013
Innovation som kilde til vækst
William Baumol (2002):
“….virtually all of the economic growth that
has occurred since the eighteenth century is
ultimately attributable to innovation…under
capitalism, innovative activity…becomes
mandatory, a life-and-death matter for the
firm and innovation has replaced price as
the name of the game in a number of
important industries”
MAY 2013
Fordele ved innovation for virksomheder
› Højere profit over længere perioder samt i
økonomisk recession (Geroski et al., 1993)
› Større overlevelseschancer i forskellige markeder
(Cefis and Marsili, 2004)
› Højere produktivitet (Criscuolo and Haskel, 2003)
› Bedre kreditvurderinger (Czarnitzki and Kraft, 2004)
› Højere export rate (Bleaney and Wakelin, 2002)
› Højere markedsværdi (Hall, 2000)
MAY 2013
Industrien får sig en religion (The Economist, Feb 18th 1999)
“Innovation has become the industrial religion of the
late 20th century. Business sees it as the key to
increasing profits and market share. Governments
automatically reach for it when trying to fix the
economy. …But what precisely constitutes
innovation is hard to say, let alone measure”
MAY 2013
Forandringer i jagten på innovation
› Den første æra – 1880s - 1930s
› Den gyldne tid for den uafhængige opfinder
› ‘Do it yourself’ innovation
› Udbredt samarbejde mellem industri og universitet
› Opblomstringen af ‘the corporate R&D lab’ – 1940s – 1980s
› Øget national sponsorering af R&D
› Intern opdagelse af nye produkter/technologier – the search for
‘new nylons’
› Aftagende virksomheds R&D og åben innovation – 1990s – i dag
› Vertikal specialisering af mange industrier – øget arbejdsdeling
af innovativt arbejde
› Vækst af mindre R&D virksomheder - outsourcing af R&D
› ‘Distributed knowledge - distributed innovation’
Source: Mowery 2009
MAY 2013
Et nyt innovationsparadigme?
“Open innovation is a paradigm that assumes that firms can
and should use external ideas as well as internal ideas, and
internal and external pathways to market, as they look
advance their technology….The open innovation paradigm
treats research and development as an open system…”
Chesbrough, 2006
“We conclude by observing again that we believe we are in the
midst of a major paradigm shift: technological trends are
causing a change in the way innovation gets done in advanced
market economies. As design and communication costs
exogenously decline, single user and open collaborative
innovation models will be viable for a steadily wider range
of design.”
Baldwin and von Hippel, 2011
MAY 2013
Source: H. Chesbrough, 2005
MAY 2013
Det trad. økonomiske perspektiv på innovation
– Firms and entrepreneurs as product developers,
manufactures and distributors are generally
recognized as the primary agents of product
change and economic progress (Schumpeter 1934)
– The consumer (user) merely chooses to make or
not make a purchase based on price and
comparison with other products and services (Ibid.)
– The firm needs to control crucial assets and
resources such as competences and decision
rights for undertaking innovation (RBV, Barney
1991)
MAY 2013
Men verden fortæller en anden historie
› “Many enhancements of our current products are
a direct result of end-user feedback and prototypes…” (www.propellerheads.se)
› "….the ongoing daily communication in our online
community is as important to us as the many
mods and add-ons created and shared by our
users ” (CEO, Propellerheads, 2006).
MAY 2013
Hvad har disse produkter tilfældes?
MAY 2013
MAY 2013
Eric von Hippels bruger-innovation model
Manufacturer-based view: We innovate and users consume what we make. We profit from selling
and protecting what we produce. We need to understand what users tell us and make
products/service that fit their needs
User-Centered view: Users make “their own” proto-types or modify manufacturers products to fit
their own needs. And sometimes reveal freely. We need to capture users’ proto-types and the
value of their activities
# of users
perceiving
needs
Users innovate
here
First manufacturer product appears
here
Target market
Time
MAY 2013
Innovation skaber værdi
Brugsværdi
Nytte/udvekslingsværdi: Innovation for salg
MAY 2013
Voice of the customer ≠
user innovation
Information ≠ prototypes,
designs, etc.
MAY 2013
Why is user innovation not easily observed?
– Users benefit from using, and so, do not claim IPRs and seldom
commercialize products - thus are seldom credited for their innovations
– Manufacturers launch new products and are associated with product
brands – they take out patents, etc.
– Innovation researchers survey firms seldom - if even – users
– Have we been missing parts of the important early process of how
innovations are created?
– Recent research:
– 8 percent of UK consumers create or modify one or more of the consumer
products they use in order to better address their needs. Almost half of
these innovators, almost 4 percent, report that their new or modified
products are, as far as they are aware, original innovations (von Hippel et al.
2011).
– Yet only 2 percent of the user innovators mention profiting as their driver for
innovation
MAY 2013
Research shows that users innovate
Industrial products
n
% innovating
Printed Circuit CAD
Urban & EvH
Pipe Hanger Hardware
Herstatt & EvH
Library IT Systems
Morrison, Roberts, EvH
Software security features
Franke & EvH
136
24.3%
74
36%
102
26%
131
19.1%
Surgical Equipment
Luthje
262
22%
Consumer products
n
% innovating
Outdoor Products
Luthje
“Extreme” sports equipment
Franke & Shah
Mountain biking equipment
Luthje, Herstatt, & EvH
153
9.8%
197
37.8%
291
19.2%
MAY 2013
User and manufacturer innovation differs
› Users typically develop functionally novel innovations:
› The first sports-nutrition bar/drink
› The first scientific instrument of a new type
› Manufacturers tend to develop improvements:
› A better-tasting sports-nutrition bar
› Improvements to an existing type of scientific instrument
Dev. by users
Mfrs.
1.New functional capability
2.Convenience or reliability improvement
(Total sample size of innovations studied: n=64)
82%
18%
Dev. by
13%
87%
MAY 2013
Users in communities
› Individual users rarely innovate in vacuum
› They cluster together in various organizational forms:
communities in Open Source Software, firm-hosted,
online/off-line, etc.
› Firms increasingly show interest in tapping into and cocreating with users in communities
22
MAY 2013
Examples of user communities
› Online and off line communities for innovation
› Computer games design – new maps, tools and weapons for
strategy games
› Open source software – Apache, Linux
› Spine surgeons – medical instrument
› Nestlé pre-mixed ingredients
› Harley Davidson – motorbikes
› Threadless – T-shirts
› Lego – toys
MAY 2013
Innovation communities: What do they
do:
› Mediate the performance and growth of firms through
development of new products and services
(Propellerheads, Eclipse open source
community/IBM),
› Support generating new firms /markets (Micro
breweries in the US/the Home Brew Computer Club)
› Posing competitive treats to firms - sometimes (,Open
source software, Wikipedia/ vs. Encyclopedia
Britannica/Microsoft Encarta)
MAY 2013
The impact of ICT
› Low cost search for more and heterogeneous information
› Low cost and accessible prototyping (e.g. software, 3D
printers) and designing (e.g. CAD/CAM)
› Opportunities for sharing and co-creating information,
products and service across time and space
› Storage of information
› And much more…
MAY 2013
Types of online user communities
Degree of revealing
Open source community: Linux
Firm hosted community: Propellerhead
User initiated and high
degree of user authority
Firm initiated and high
degree of firm authority
MAY 2013
Fundamentet
› Jeppesen & Frederiksen, 2006, Why do users contribute to firm-hosted
user communities? The case of computer-controlled music instruments,
Organization Science. Vol. 17(1): 45-63
› Dahlander & Frederiksen, 2012, The core and cosmopolitans: A
relational view on innovation in user communities, Organization
Science. Vol. 23 (4): 988-1007
› Autio, Dahlander & Frederiksen, 2013, Information exposure,
opportunity evaluation and entrepreneurial action: An empirical
investigation of an online community (Forthcoming; Academy of
Management Journal)
MAY 2013
My research
› Actors:
› Individuals in a community
› The intersection of a community and a community hosting firm
› Three parts: Same case
› Particular personal characteristics motivating users to innovate in
online communities
› Specific relational positions engaging users in innovation
› Personal characteristics and relational position to understand
opportunity evaluation and entrepreneurial action by users in
communities
MAY 2013
Research setting:
• Develops computer-controlled music instruments for
sound production, processing, and recording.
• Headquarter in Stockholm, established 1994, 100
fulltime employees (+50 temp.), organic annual growth
(10Y)
• Technologies: Rex-file format, Rewire, and Recycle
• Products: Rebirth, Reason and Record
• Awarded best music software product(s) by world
leading associations and industry specific journals
over 10 years
• Recently moved into mobile applications
• ”Propellerhead could not work today if the community
was not there.” (CEO, Propellerhead, 2010)
MAY 2013
Research setting
MAY 2013
User innovations: Modifications and extras
“Mods. A celebration of
creativity. Here at
Propellerhead we're
crazy enough to let
users take our
precious ReBirth [a
Propellerhead product]
and redesign it any
way they like. If you're
skilled in graphic
design and you have a
bunch of cool drum
samples you've always
wanted to share make a mod, mail it to
us and maybe, just
maybe, we will make
sure it reaches every
corner of the world”
(www.propellerheads.s
e).
QWERTY Note Input v1.1
by Robotovat
This little program lets you play MIDI notes from your Mac's computer keyboard. You can use
OMS's IAC to transmit notes to Reason. QWERTY Note input is Freeware.
ReVision 1.1
by Granted Software
Makes soundtrack composition a bit more convenient by allowning
a QuickTime movie to be played in sync with Reason. The latest
version ov ReVision holds new features such as tempo and time
signature changes at the marker locations. It's also got AIFF and
Movie export and better timecode handling.
Digalog
By Einzelgänger.
Get it from the Granted Software website
Long time board veteran Einzelgänger has made this very electronic
sounding and synthetic looking mod. The interface is a very plastic blue
and the sample set offers lots of bleeps and synthetic percussion sounds.
MAY 2013
› Community users create developments (i.e. mods
and extras) that take an experienced in-house
product developer at least 200 hours to create.
› Approximately 250 mods and extras created by users
and shared in the community
› The firms frequently picks up prototypes and ideas
from users and integrate them into new product
versions
› Recently the firm started to sell both own and third
party developed new products prop shop – think
Google app store
MAY 2013
Problem-solving:
Gated filter sweeps Posted by nujazz on 2008-02-13 20:46
Hey all... What is the best way to create a gated filter sweep that comes in and out of
focus (velocity)?? (Let me know if this doesn't make any sense). Thanks, -J
Re: gated filter sweeps Posted by Oggy on 2008-02-15 04:29
wt? I think you mean a "schutuuk schutiik schikk schikk stikk schwee tik tik schewee
schikk scutick scutuck" thingee.
hmmm...interesting question. First response old modular style...program the filter sweep,
the pass that through a gated Voltage Controlled Amplifier. So, in Reason...do the filter
sweep however, then a Matrix full off/on curve plugged into an amp somewhere. I think
you could do this in a single Sub, or another unit (Mal/Thor) to use as external filters. Did
it work?
Re: gated filter sweeps Posted by EditEd4TV on 2008-02-15 21:34
Well, if I understand correctly... The filter sweep is just part of the patch, but as far as
triggering it so it gates open/closed, there's a couple ways (actually, a LOT of ways) you
can do it. I made a file many years ago which shows you a few ways. You can get it at
the link below, it's called DemoTriggers1. You should place the L/R markers around
each section to listen to it over and over again while you flip the rack around and look at the
CV wiring. Each section is different. Hope that helps...
PinkNoise Studio Inc.
educational, multimedia
& soundware
developing company.
Users
entrepreneurship
MAY 2013
MAY 2013
Data captured and methods applied
› Case study (9Y): A firm and its community
› Unit of analysis: Individuals in the community
› Primary and secondary data sources
› Mixed methods:
› Netnographic study (Kozinets 1998) - field notes obtained during a three-month
period: one hour per day
› Online surveys (3)
› Social network (Ucinet) of web –log interactions (approx. 9000 individuals, and
151.000 messages over 8 years)
› Content coding of web –log (5000 messages, 3 independent coders)
› Interviews – users and the firm (45)
› Ranking of user innovations: quality and novelty (i.e. survey to product
developers of the firm and experienced users in the community)
MAY 2013
Individual characteristics: Abilities and motivation
› Some individuals are more important than others in
contributing innovations to communities because of
particular individual characteristics
› What can the firm do to better support healthy innovative
community? And how to benefit from single innovative
users?
› Innovation measured as self-perceived innovative
contributions, novelty for the firm vs. to the world (e.g. CIS,
EU)
MAY 2013
Individual characteristics for user innovation (I)
› Professionals or hobbyists: Motivation
› “…people who are working in the music industry are too busy
and live a different lifestyle…these people who earn their living
from music simply do not have the time or experience to spare
to experiment and create mods or other extras”
› User innovators are likely to be hobbyists:
› Who employ their work related expertise for their hobby. (e.g. skilled IT
individuals) - a ‘play- or training ground’
› Exhibit a higher willingness to share innovations in the community than
professionals
MAY 2013
Individual characteristics for user innovation (II)
› Firm recognition as a motivator for innovation (no effect of
peer recognition?)
› “…I can tell you that it was very gratifying to have the company acknowledge
my own mod making efforts…an official “Propellerhead approved” mod must
meet certain standards, having the firm recognizing it not only means that
one’s work meets the company standards to qualify, but there’s a sense that
your work is accepted by the music industry”
› Innovative users indicate their willingness to innovate “on demand” to serve
manufacturers - community as recruitment filter?
› Firm recognition is an important motivator among innovative users:
competition for recognition etc. This provides the firm some leverage for
governance
MAY 2013
Individual characteristics for user innovation (IIV)
› Lead users: Ability (self-selected)
› Ahead of the market – early and unique needs
› Expect benefits from an innovative solution
› Often experienced users may serve as opinion leaders in communities
predicting technological trends
MAY 2013
Relational factors (I)
› There are relational positions in various social networks that
motivate innovative performance by individual users
› Research tends to look at position within ONE community – we link
external community participation to internal community position to
explain individual innovativeness
› Innovation measured as contributions ranked by firm and users (not
in sample) as innovative and degree of innovativeness
› Underlying question: How does the firm retain attractiveness of
online communities?
MAY 2013
Relational factor (II)
Findings:
› Do not cheery-pick individuals with specific personal characteristics (e.g.
lead users) - focus on the community as a self-enforcing resource and
look at the structural position of individuals
› Individuals located at the periphery and in the core of communities play
different roles for innovation – yet mainly user innovators are ‘optimal
marginal’
› Users are part of external communities – spanning across boundaries to
technically adjacent communities is important for spurring and
supporting user innovation within the focal community
› External community participation is particularly important for spurring
innovation among users who are peripheral in the focal community
MAY 2013
A wider phenomenon?
› Users as innovators
› Innovate because they have heterogeneous needs and abilities
› Oftentimes these individuals share their ideas and innovations in communities
› Such community-based innovation processes provide an environment for users to
develop new ideas and learn from each other
› Users as entrepreneurs
› Cases where firms are spun out of virtual worlds: open source software
communities, Second life or firm-hosted communities
› Limited understanding of the process by which users become entrepreneurs
MAY 2013
Conceptual model
Social domain
Technical domain
Lead userness
Boundary spanning
H1 +
H2 +
Opportunity
evaluation
(Third-person
opportunity)
Technological probing
Technical knowledge
(i.e. personal charateristics) enhances
perceptions of what is doable,
giving rise to latent entrepreneurial
agency
+
Entrepreneurial
action
(First-person
opportunity)
+ H4
+ H3
Community attention
Social position provides access
to information of what is feasible.
As social knowledge is transient,
opportunistic reaction is required
MAY 2013
Users as entrepreneurs
Findings:
› Users who are skilful and experienced (i.e. LU) and technological probing
have highest probability of opportunity discovery and evaluation (i.e. driven
by individual characteristics)
› Users who enjoy a high level of attention (social status) within the focal
community and extensively span boundaries to other online communities for
information search and validation of ideas have high likelihood of
entrepreneurial action: founding a firm (i.e. driven by position in social
networks)
› Individual product users setting up firms around the manufactures key
product can establish an ecosystem around a core product (e.g. informal
standard setting and network effects) (Garud & Kumaraswamy 1993)
MAY 2013
Summing up
› Importance of users in communities on the demand side for innovation
› A set of individual characteristics explain users innovative performance in
online communities
› However this is complemented by a set of relational explanations for
individual innovativeness
› New platforms for entrepreneurial action around the products/service are
arising driven by both individual characteristics and relations
MAY 2013
Future research in user innovation and communities
› Dynamics of knowledge production in communities: who and how do
innovators move over time in social networks – the position vs.
performance issue? (work in progress: Frederiksen, Alexy & ter Wal,
2011)
› How community issues and firm strategy co-evolve? (work in progress,
Antorini, Frederiksen, Nørskov & Scholderer, 2011)
› Natural experiments in user communities: How different
incentives/circumstances encourage users to innovate and share (i.e.
shared micro IPR, tournament rewards, recruitment, recognition,
technical structure, etc.)
MAY 2013
Thank you for your attention
Comments and questions are
welcome