Private-collective Model Of Innovation
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Private-collective Model Of Innovation
The term private-collective model of innovation was coined by Eric von Hippel and Georg von Krogh in their 2003 publication in '' Organization Science''. This innovation model represents a combination of the private investment model and the collective-action innovation model. In the private investment model innovators appropriate financial returns from innovations through intellectual property rights such as patents, copyright, licenses, or trade secrets. Any knowledge spillover reduces the innovator's benefits, thus freely revealed knowledge is not in the interest of the innovator. The collective-action innovation model explains the creation of public goods which are defined by the non-rivalry of benefits and non-excludable access to the good. In this case the innovators do not benefit more than any one else not investing into the public good, thus free-riding occurs. In response to this problem, the cost of innovation has to be distributed, therefore governments typically inv ...
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Eric Von Hippel
Eric von Hippel (born August 27, 1941) is an American economist and a professor at the MIT Sloan School of Management, specializing in the nature and economics of distributed and open innovation. He is best known for his work in developing the concept of user innovation – that end-users, rather than manufacturers, are responsible for a large amount of innovation. In order to describe this phenomenon, in 1986 he introduced the term lead user. Hippel's work has applications in business strategy and free/open source software (FOSS), and he is one of the most highly cited social scientists writing on FOSS. The BUGvonHippel, named for Eric von Hippel and bearing his name in Braille, is a breakout board module and an example of open-source hardware. Eric von Hippel is the son of the material scientist and physicist Arthur Robert von Hippel, who was also a professor at MIT. His great uncle is the German ophthalmologist Eugen von Hippel. von Hippel has been awarded the EU Innovat ...
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Free Software
Free software or libre software is computer software distributed under terms that allow users to run the software for any purpose as well as to study, change, and distribute it and any adapted versions. Free software is a matter of liberty, not price; all users are legally free to do what they want with their copies of a free software (including profiting from them) regardless of how much is paid to obtain the program.Selling Free Software
(gnu.org)
Computer programs are deemed "free" if they give end-users (not just the developer) ultimate control over the software and, subsequently, over their devices. The right to study and modify a computer program entails that

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Political Science
Political science is the scientific study of politics. It is a social science dealing with systems of governance and power, and the analysis of political activities, political thought, political behavior, and associated constitutions and laws. Modern political science can generally be divided into the three subdisciplines of comparative politics, international relations, and political theory. Other notable subdisciplines are public policy and administration, domestic politics and government, political economy, and political methodology. Furthermore, political science is related to, and draws upon, the fields of economics, law, sociology, history, philosophy, human geography, political anthropology, and psychology. Political science is methodologically diverse and appropriates many methods originating in psychology, social research, and political philosophy. Approaches include positivism, interpretivism, rational choice theory, behaviouralism, structuralism, pos ...
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Community Building
Community building is a field of practices directed toward the creation or enhancement of community among individuals within a regional area (such as a neighborhood) or with a common need or interest. It is often encompassed under the fields of community organizing, community organization, community work, and community development. A wide variety of practices can be utilized for community building, ranging from simple events like potlucks and small book clubs, to larger–scale efforts such as mass festivals and building construction projects that involve local participants rather than outside contractors. Activists and community workers engaged in community building efforts in industrialized nations see the apparent loss of community in these societies as a key cause of social disintegration and the emergence of many harmful behaviors. They may see building community as a means to address perceived social inequality and injustice, individual and collective well-being, and ...
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Non-excludable
In economics, a good, service or resource are broadly assigned two fundamental characteristics; a degree of excludability and a degree of rivalry. Excludability is defined as the degree to which a good, service or resource can be limited to only paying customers, or conversely, the degree to which a supplier, producer or other managing body (e.g. a government) can prevent "free" consumption of a good. Excludability was originally proposed in 1954 by American economist Paul Samuelson where he formalised the concept now known as public goods, i.e. goods that are both non-rivalrous and non-excludable. Samuelson additionally highlighted the market failure of the free-rider problem that can occur with non-excludable goods. Samuelson's theory of good classification was then further expanded upon by Richard Musgrave in 1959, Garret Hardin in 1968 who expanded upon another key market inefficiency of non-excludeable goods; the tragedy of the commons. Excludability is not an inherent chara ...
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Non-rivalrous
In economics, a good is said to be rivalrous or a rival if its consumption by one consumer prevents simultaneous consumption by other consumers, or if consumption by one party reduces the ability of another party to consume it. A good is considered non-rivalrous or non-rival if, for any level of production, the cost of providing it to a marginal (additional) individual is zero. A good is "anti-rivalrous" and "inclusive" if each person benefits more when other people consume it. A good can be placed along a continuum from rivalrous through non-rivalrous to anti-rivalrous. The distinction between rivalrous and non-rivalrous is sometimes referred to as jointness of supply or subtractable or non-subtractable. Economist Paul Samuelson made the distinction between private and public goods in 1954 by introducing the concept of nonrival consumption. Economist Richard Musgrave followed on and added rivalry and excludability as criteria for defining consumption goods in 1959 and 1969.   ...
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Public Good (economics)
In economics, a public good (also referred to as a social good or collective good)Oakland, W. H. (1987). Theory of public goods. In Handbook of public economics (Vol. 2, pp. 485-535). Elsevier. is a good that is both non-excludable and non-rivalrous. For such goods, users cannot be barred from accessing or using them for failing to pay for them. Also, use by one person neither prevents access of other people nor does it reduce availability to others. Therefore, the good can be used simultaneously by more than one person. This is in contrast to a common good, such as wild fish stocks in the ocean, which is non-excludable but rivalrous to a certain degree. If too many fish were harvested, the stocks would deplete, limiting the access of fish for others. A public good must be valuable to more than one user, otherwise, the fact that it can be used simultaneously by more than one person would be economically irrelevant. Capital goods may be used to produce public goods or services t ...
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FLOSS
Free and open-source software (FOSS) is a term used to refer to groups of software consisting of both free software and open-source software where anyone is freely licensed to use, copy, study, and change the software in any way, and the source code is openly shared so that people are encouraged to voluntarily improve the design of the software. This is in contrast to proprietary software, where the software is under restrictive copyright licensing and the source code is usually hidden from the users. FOSS maintains the software user's civil liberty rights (see the Four Essential Freedoms, below). Other benefits of using FOSS can include decreased software costs, increased security and stability (especially in regard to malware), protecting privacy, education, and giving users more control over their own hardware. Free and open-source operating systems such as Linux and descendants of BSD are widely utilized today, powering millions of servers, desktops, smartphones (e.g., ...
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Open Source
Open source is source code that is made freely available for possible modification and redistribution. Products include permission to use the source code, design documents, or content of the product. The open-source model is a decentralized software development model that encourages open collaboration. A main principle of open-source software development is peer production, with products such as source code, blueprints, and documentation freely available to the public. The open-source movement in software began as a response to the limitations of proprietary code. The model is used for projects such as in open-source appropriate technology, and open-source drug discovery. Open source promotes universal access via an open-source or free license to a product's design or blueprint, and universal redistribution of that design or blueprint. Before the phrase ''open source'' became widely adopted, developers and producers have used a variety of other terms. ''Open source'' ga ...
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Georg Von Krogh
Georg von Krogh (born 24 May 1963) is a Norwegian organizational theorist and Professor at the Swiss Federal Institute of Technology in Zurich (ETH Zurich) and holds the Chair of Strategic Management and Innovation. He also serves on Strategy Commission at ETH Zurich. Biography Born in Oslo, Norway to a family of Danish nobility, Von Krogh received his MSc from the Norwegian University of Technology and Natural Science, and a Ph.D. from this University's Department of Industrial Economics and Technology Management. Von Krogh started his academic career as Assistant Professor of Business Policy at SDA Bocconi, Bocconi University in Italy. Subsequently, he was Associate Professor of Strategy at the Norwegian School of Management, and Professor of Management at the University of St. Gallen in Switzerland, and a Director of this University's Institute of Management. He was also the President of the Research Commission at the University of St. Gallen. He has been Visiting Professo ...
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Free Rider Problem
In the social sciences, the free-rider problem is a type of market failure that occurs when those who benefit from resources, public goods (such as public roads or public library), or services of a communal nature do not pay for them or under-pay. Free riders are a problem because while not paying for the good (either directly through fees or tolls or indirectly through taxes), they may continue to access or consume it. Thus, the good may be under-produced, overused or degraded. Additionally, it has been shown that despite evidence that people tend to be cooperative by nature, the presence of free-riders cause this prosocial behaviour to deteriorate, perpetuating the free-rider problem. The free-rider problem in social science is the question of how to limit free riding and its negative effects in these situations. Such an example is the free-rider problem of when property rights are not clearly defined and imposed. The free-rider problem is common with public goods which are ...
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Public Goods
In economics, a public good (also referred to as a social good or collective good)Oakland, W. H. (1987). Theory of public goods. In Handbook of public economics (Vol. 2, pp. 485-535). Elsevier. is a good that is both non-excludable and non-rivalrous. For such goods, users cannot be barred from accessing or using them for failing to pay for them. Also, use by one person neither prevents access of other people nor does it reduce availability to others. Therefore, the good can be used simultaneously by more than one person. This is in contrast to a common good, such as wild fish stocks in the ocean, which is non-excludable but rivalrous to a certain degree. If too many fish were harvested, the stocks would deplete, limiting the access of fish for others. A public good must be valuable to more than one user, otherwise, the fact that it can be used simultaneously by more than one person would be economically irrelevant. Capital goods may be used to produce public goods or services t ...
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