In this engaging discussion, Eric von Hippel, a renowned Professor of Technological Innovation at MIT, delves into the world of free innovation, where consumers create solutions out of necessity. He shares inspiring examples, like innovative insulin methods by parents and the evolution of mountain biking. Eric emphasizes the importance of altruism in driving innovation and the need to rethink intellectual property laws, especially with AI’s rise. The conversation also highlights how user-driven creativity can shape future technological landscapes and societal benefits.
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question_answer ANECDOTE
Student Inspiration
Eric von Hippel's students, interested in extreme sports, inspired his research on mountain biking and kayaking.
He leveraged their expertise to study innovations within those fields.
question_answer ANECDOTE
Mountain Bikes and Insulin Pumps
Consumers develop free innovations for personal use, like mountain bikes.
Manufacturers later adopt these innovations for commercial production.
insights INSIGHT
Scaling of Free Innovation
Free innovation scales as users share designs and build upon each other's work.
This user-driven scaling makes free innovation competitive with producer innovation.
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In *Democratizing Innovation*, Eric von Hippel examines the shift towards user-centered innovation, where users, aided by technology, develop and share their own products and services. This trend is seen in software and physical products, with examples ranging from surgical equipment to surfboards. Von Hippel argues that manufacturers should adapt by seeking out user innovations and providing toolkits for customization, which can enhance social welfare and business outcomes.
The sources of innovation
The sources of innovation
Eric von Hippel
Eric von Hippel's "The Sources of Innovation" is a seminal work in the field of innovation studies. The book challenges the traditional view that innovation primarily originates from large corporations' R&D departments. Instead, von Hippel argues that users themselves are a significant source of innovation, often developing new products and services to meet their own needs. He presents a wealth of empirical evidence to support this claim, drawing on case studies from various industries. The book explores the implications of this user-centric view of innovation for business strategy and public policy. It provides a comprehensive framework for understanding the diverse sources of innovation and their interactions.
Free Innovation
Free Innovation
Eric von Hippel
My guest today is Eric von Hippel, Professor of Technological Innovation at the MIT Sloan School of Management. Eric is the author of numerous academic articles and books, including Free Innovation, Democratizing Innovation, and The Sources of Innovation, all published by MIT Press and available for free. Eric has accumulated over 90,000 citations on Google Scholar and has received many awards, including the Schumpeter School Prize (2017)—a particularly interesting recognition given his work on non-Schumpeterian innovation.
In our conversation, Eric and I explore the role of free innovation in today’s economy. Eric highlights some of his favorite examples of free innovation and discusses how, despite being developed at personal cost, it is scaling at an impressive rate. We explore the mechanisms that best enable this scaling—whether through recognition, institutional support, IP protections, or alternative incentives. By the end of this talk, you will understand what free innovation is, how it develops, and how it interacts with producer innovation.
Scaling Theory 
