Comparing Business and Household Sector Innovation in Consumer Products: Findings from a Representative Study in the United Kingdom

In a first survey of its type, we measure development and modification of consumer products by product users in a representative sample of 1,173 UK consumers age 18 and older. We estimate this previously unmeasured type of household sector innovation to be quite large: 6.1% of UK consumers—nearly 2....

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Main Authors: von Hippel, Eric A., Jong de, Jeroen P. J., Flowers, Stephen
Other Authors: Sloan School of Management
Format: Article
Language:en_US
Published: Institute for Operations Research and the Management Sciences (INFORMS) 2013
Online Access:http://hdl.handle.net/1721.1/76350
https://orcid.org/0000-0002-7235-1032
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author von Hippel, Eric A.
Jong de, Jeroen P. J.
Flowers, Stephen
author2 Sloan School of Management
author_facet Sloan School of Management
von Hippel, Eric A.
Jong de, Jeroen P. J.
Flowers, Stephen
author_sort von Hippel, Eric A.
collection MIT
description In a first survey of its type, we measure development and modification of consumer products by product users in a representative sample of 1,173 UK consumers age 18 and older. We estimate this previously unmeasured type of household sector innovation to be quite large: 6.1% of UK consumers—nearly 2.9 million individuals—have engaged in consumer product innovation during the prior three years. In aggregate, consumers' annual product development expenditures are more than 1.4 times larger than the annual consumer product R&D expenditures of all firms in the United Kingdom combined. Consumers engage in many small projects that seem complementary to the innovation efforts of incumbent producers. Consumer innovators very seldom protect their innovations via intellectual property, and 17% diffuse to others. These results imply that, at the country level, productivity studies yield inflated effect sizes for producer innovation in consumer goods. They also imply that existing companies should reconfigure their product development systems to find and build on prototypes developed by consumers.
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spelling mit-1721.1/763502022-09-26T12:42:28Z Comparing Business and Household Sector Innovation in Consumer Products: Findings from a Representative Study in the United Kingdom von Hippel, Eric A. Jong de, Jeroen P. J. Flowers, Stephen Sloan School of Management von Hippel, Eric A. In a first survey of its type, we measure development and modification of consumer products by product users in a representative sample of 1,173 UK consumers age 18 and older. We estimate this previously unmeasured type of household sector innovation to be quite large: 6.1% of UK consumers—nearly 2.9 million individuals—have engaged in consumer product innovation during the prior three years. In aggregate, consumers' annual product development expenditures are more than 1.4 times larger than the annual consumer product R&D expenditures of all firms in the United Kingdom combined. Consumers engage in many small projects that seem complementary to the innovation efforts of incumbent producers. Consumer innovators very seldom protect their innovations via intellectual property, and 17% diffuse to others. These results imply that, at the country level, productivity studies yield inflated effect sizes for producer innovation in consumer goods. They also imply that existing companies should reconfigure their product development systems to find and build on prototypes developed by consumers. 2013-01-23T17:00:16Z 2013-01-23T17:00:16Z 2012-05 2010-09 Article http://purl.org/eprint/type/JournalArticle 0025-1909 1526-5501 http://hdl.handle.net/1721.1/76350 von Hippel, E., J. P. J. de Jong, and S. Flowers. “Comparing Business and Household Sector Innovation in Consumer Products: Findings from a Representative Study in the United Kingdom.” Management Science 58.9 (2012): 1669–1681. https://orcid.org/0000-0002-7235-1032 en_US http://dx.doi.org/ 10.1287/mnsc.1110.1508 Management Science Creative Commons Attribution-Noncommercial-Share Alike 3.0 http://creativecommons.org/licenses/by-nc-sa/3.0/ application/pdf Institute for Operations Research and the Management Sciences (INFORMS) SSRN
spellingShingle von Hippel, Eric A.
Jong de, Jeroen P. J.
Flowers, Stephen
Comparing Business and Household Sector Innovation in Consumer Products: Findings from a Representative Study in the United Kingdom
title Comparing Business and Household Sector Innovation in Consumer Products: Findings from a Representative Study in the United Kingdom
title_full Comparing Business and Household Sector Innovation in Consumer Products: Findings from a Representative Study in the United Kingdom
title_fullStr Comparing Business and Household Sector Innovation in Consumer Products: Findings from a Representative Study in the United Kingdom
title_full_unstemmed Comparing Business and Household Sector Innovation in Consumer Products: Findings from a Representative Study in the United Kingdom
title_short Comparing Business and Household Sector Innovation in Consumer Products: Findings from a Representative Study in the United Kingdom
title_sort comparing business and household sector innovation in consumer products findings from a representative study in the united kingdom
url http://hdl.handle.net/1721.1/76350
https://orcid.org/0000-0002-7235-1032
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