Innovation by User Communities: Learning from Open-Source Software

In this article Eric von Hippel talks about user led innovation and the impact it can have on the norms of the business world.  Two examples are used, Apache open-source software and high-performance windsurfing, to show the capabilities of user led innovation.  For this innovation type to be successful three conditions must be present; at least some users must have sufficient incentive to innovate; at least some users have an incentive to voluntarily reveal their innovations and the means to do so; and user-led diffusion of innovations can compete with commercial production and distribution.  If all of these aspects are present in a user-led innovation community, it is self reliant and able to out perform manufacturers.