UC Berkeley School of Information

Users, aided by improvements in computer and communications technology, are increasingly developing their own new products and services: Innovation is being democratized. User-innovators—both individuals and firms—often freely share their innovations with others, creating user-innovation communities and a rich intellectual commons. The trend toward democratized innovation affects both information products and physical products. Innovation by users can produce an increase in social welfare relative to a manufacturer-only innovation system. Innovation by "lead users" can provide a valuable feedstock for manufacturer innovation. It also can disrupt manufacturers' existing business models. User innovation is so robust that it can actually drive manufacturers out of product design in some fields.