José Simões Manuel Bóia Variations in the Functional Source of Innovation The Sources of Innovation Von Hippel, E. 2001/02/09 The Interactive and Non-linear Nature of Innovation

Users sometimes Innovate, but do they always? Users sometimes Innovate, but do they always? What are the Sources for Innovation? What are the Sources for Innovation?Users?Manufacturers?Suppliers?Others? Variations in the Functional Source of Innovation

 Pultrusion case * not high-tech firms * no formal R & D structures or connections * no formal Technical Training Creative person triggered by out of the ordinary (large) production orders Users as Innovators Variations in the Functional Source of Innovation 90 % of all the significant pultrusion process machinery innovations were developed by machine users

 Tractor Shovel case 1 Manufacturers - Increase the value - Increase the value - Broad the scope of their product - Broad the scope of their product 2 Allied Manufacturers and Vendors - encouragement by main manufacturers due to the enhancements and value it provides to basic tractor shovel - encouragement by main manufacturers due to the enhancements and value it provides to basic tractor shovel Variations in the Functional Source of Innovation Manufacturers as Innovators Type 1: 94 % of the Innovations were developed by their Manufacturers Type 2: 40 % of the Accessories Innovations were developed by their Allied Manufacturers or Vendors

Manufacturers as Innovators  Engineering Thermoplastics case * counted for 2% by volume of all plastics * accounted for 6% of the total value of all plastics Increase the value of the final product Broad the scope of their production plant capabilities Variations in the Functional Source of Innovation 90 % of Innovations were developed by Manufacturers

Manufacturers as Innovators  Plastics Additives case Modify the properties of basic polymers Used in the four largest groups of plastics commercialized after the World War II Commercially Successful Improvement: decreased toxicity, increased ease of use Variations in the Functional Source of Innovation 90% of plastic additives innovations developed by manufacturers

Suppliers/Manufacturers as Innovators  Wire Termination Equipment case Wire Termination Machines Wire Termination Machines 1 Cut the cable and strip the insulation 1 Cut the cable and strip the insulation 2 Cut the cable and attach a connector in one or both ends 2 Cut the cable and attach a connector in one or both ends Different Type of Wire => different wire termination machines Different Type of Wire => different wire termination machines Variations in the Functional Source of Innovation Type 1: 56 % of Innovation made by manufacturers 19% Users and 0 % Suppliers Type 2: 83% of Innovation made by connectors suppliers

Suppliers as Innovators  Process Equipment case Process Machinery Process Machinery 1 Use Industrial gases (Oxygen, Nitrogen) 1 Use Industrial gases (Oxygen, Nitrogen) 2 Use Thermoplastic resins 2 Use Thermoplastic resins Development Innovation Process Machines => capture rents from sales of materials used => capture rents from sales of materials used Variations in the Functional Source of Innovation Type 1: 33 % of Innovation made by Suppliers Type 2: 36% of Innovation made by Suppliers

Question: Will variations in time of the functional Source of Innovation exist within each case study? Will variations in time of the functional Source of Innovation exist within each case study? Variations in the Functional Source of Innovation Users SuppliersManufacturers Innovation

How the different sources could increase Innovation? Use of Associations of all sources Use of Associations of all sources Information Networks Information Networks Users groups Users groups Market Surveys Market Surveys Use of qualified Scientific and Engineering human resources with user experience Use of qualified Scientific and Engineering human resources with user experience ? ? Variations in the Functional Source of Innovation

The End

Variations in the Functional Source of Innovation

Pultrusion Process

Tractor Shovel