Comparing Corporate and Consumer Innovation
The New York Times recently reported on a large-scale survey of consumer innovation, financed by the British government. What the team discovered, was that the amount of money individual consumers spent making and improving products was more than twice as large as the amount spent by all British firms combined on product research and development over a three-year period.
The examples of product modification found among the nearly 1,200 people surveyed ranged from simple to complex. One woman colored two halves of a clock dial different shades to teach her children how to tell time; a man concocted a device made from a fishing rod and a large hook to trim his treetops; another reprogrammed his GPS unit to make it easier to use and tailored to his needs.
The survey measured “development and modification of consumer products by product users”. From those results, the research team reported on consumer-innovators’ expenditure patterns, demographic variables, and motivations. Their research explores the diffusion of the innovations consumers generate, and discusses the complementary nature of consumer and producer innovation efforts.
According to a Harvard research quoted in the article, “the results point to the necessity of rethinking patent law as well as government incentives for research and open sourcing.”
“As consumer innovators proliferate, the tensions with producers have escalated, and the courts are increasingly going to be called in to adjudicate,” said another professor.
According to one of the researchers, the Finnish and Portuguese governments were providing financing to conduct a survey similar to the British survey. The U.S. had not shown interest.
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