User vs Manufacturer Innovation


The nature of innovations developed by users and manufacturers differ considerably. Strengths and weaknesses are considered and practical implementation steps are provided along with case study evidence of organisations that have benefited from user-led innovation.

Technique Overview

User vs Manufacturer Innovation Definition

A "user innovation" is when a developer expects to benefit by using it, whereas a "manufacturer innovation" is when a developer expects to profit by selling it (von Hippel, 2005; Di Gangi & Wasko, 2009). In a traditional manufacturer-centred innovation paradigm, manufacturers identify user needs, develop products at private expense, and profit by protecting and commercialising. In a user-centred innovation paradigm, lead users innovate to solve their own needs at private expense, and may freely release their innovations (Henkel & von Hippel, 2005).

User vs Manufacturer Innovation Description *

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Business Evidence

User vs Manufacturer Innovation Strengths *

User vs Manufacturer Innovation Weaknesses *

Examples of User vs Manufacturer Innovation *

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Business Application

User vs Manufacturer Innovation Implementation *

Success Factors of User vs Manufacturer Innovation *

Measures of User vs Manufacturer Innovation *

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Professional Tools

User vs Manufacturer Innovation Videos *

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Further Reading

User vs Manufacturer Innovation Web Resources *

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User vs Manufacturer Innovation References (4 of up to 20) *

  • Baker, N. R., Green, S. G., and Bean, A. S. (1986) Why R&D project succeed or fail. Research Management, Vol. 29(6), pp. 29-34.
  • Biemans, W. G. (1991) User and third-party involvement in developing medical equipment innovations. Technovation, Vol. 11(3), pp. 163-182.
  • Di Gangi, P. M., and Wasko, M. (2009) Steal my idea! Organizational adoption of user innovations from a user innovation community: A case study of Dell IdeaStorm. Decision Support Systems, Vol. 48(1), pp. 303-312.
  • Di Gangi, P. M., Wasko, M. M., and Hooker, R. E. (2010) Getting customer’s ideas to work for you: learning from Dell how to succeed with online user innovation communities. MIS Quarterly Executive, Vol. 9(4), pp. 213-228.

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