1. User as Innovators Rui Martins Mestrado em Engenharia e Gestão de Tecnologia José Mangueira

2. Users as Innovators To determine who actually develops novel, comercially sucessfull innovations. Objectives Objects of Study Two major classes of process equipment used by the electronic industry were considered in this study, namelly: Scientific Instruments Semiconductor & Printed Circuit Boards Assembly process.

3. Scientific Instrument Sample Composition Instrument TypeFirst-of-TypeMajorMinorTotal Gas chromatograph111012 Nuclear magnetic resonance spectrometer114015 Ultraviolet absorption spectrophotometer1506 Transmission electron microscope1146378 Total44463111 An innovator was defined as the firm or individual that first developed a Scientific Instrument to a state proved functionally usefull, as indicated by the publication of data generated by it in a scientific journal. The caracterization of the inovation (major or minor) was defined by consensus of the experts in the field.

4. Innovation Significance User developed (%) UserManufacturerN.A.Total First-of-Type1004004 Major82368044 Minor7032141763 Total77722217111 It’s clear that users developed 77% of all innovations. Several innovations were sometimes attributed to a single innovating user or manufacturer, but the finding of user innovation is not affected by this, since the same pattern of innovation was observed trough out the sample. Most manufacturers report that their product is based on the earlier, user-developed device. Which accounts for 78% of the instruments commercialized by manufacturers, displaying the same underlying technical operating principles than the user-developed device. Source of Scientific Instrument Innovation (by Significance)

5. The innovating users were researchers employed by universities. Information was diffused by innovators trough publishing research results at conferences and information interchange, which provided a rapid pick up by other scientists or commercializing firms. Either other scientists replicated the homebuilt device and also published papers involving its use or a commercial version was introduced in the market. Typically the innovative user : Perceived that an advance in instrumentation was required; Invented the instrument; Built a prototype; Proved the prototype's value by applying it; Diffused detailed information on how the prototype device could be replicated. Typically the manufacturer: Performed engineering work on the user's device to improve it's reliability and convenience of operation; Manufactured, marketed and sold the innovative product. Scientific Instrument Innovation Diffusion

6. Semiconductor & PCB Assembly Sample Composition Novel EquipmentNovel Technique (only) Semiconductor Initial practice 56 Major Improvement 163 Minor Improvement 110 PC board assembly Initial practice 22 Major Improvement 60 Minor Improvement 90 Total4911 An innovator was defined as the firm or individual that first developed a sampled innovation to a state proved functionally usefull, as indicated by it’s use in a commercial production. The caracterization of the inovation (major or minor) was defined by consensus of the experts in the field as before.

7. Users developed all of the process machinery innovation involved in the initial commercial practice of a process step and more than 60 % of the major and minor improvements to that machinery. Source of Semiconductor & PCB Assembly Innovation User (%)UserManufacturerJointN.A.Total Semiconductor Initial practice 10050005 Major Improvement 711022216 Minor Improvement 56531211 PC board assembly Initial practice 10020002 Major Improvement 4022116 Minor Improvement 6352119 Total672995649 Sources of Process Machinery Innovations

8. User developed all of the technique-only process innovations in the sample. Users were found to be the developers of all multistep process concepts examined in this study. Clearly, user innovation is not a phenomenon restricted to scientific instruments only ! Source of Semiconductor & PCB Assembly Innovation Commercial equipmentTechnique onlyDeveloped by Semiconductor Initial practice 23100 % User Major Improvement 03100 % User PC board assembly Initial practice 11100 % User Major Improvement 00 Total37 Process Innovations Not Requiring Novel Equipment

9. The following transfer patterns were observed (ordered by frequency) : Multiple interactions between the staffs of user firms and manufacturer firms made it impossible to isolate the events surrounding transfer. Although a user was first to develop the equipment, no transfer process was identificable retrospectively. A user transferred the design of the innovation along with a purchase order of units produced. The intent was to obtain an outside source of supply for the novel equipment. An equipment user also adopted the role of equipment manufacturer and began to produce the innovation for sale to other user firms Semiconductor & PCB Assembly Innovation Diffusion Transfer process were typically not well documented or recalled by enterviewees.

10. User Dominated Innovation Process Typically the product user, not the product manufacturer, is the one who recognizes the need, solves the problems trough an invention, builds a prototype, and proves the prototype's value in use. Its natural to assume that the innovation process of new industrial good occurs within the commercializing firm and this can inadvertently reinforce the presumption of manufacturer-as-innovator. It's easy too make the assumption, when firms advertise "their" innovative device, although not meaning that "they" invented, prototyped and field tested the innovation.

11. Comments The sample is not statistically representative, for some of the conclusions, since there are too few items (innovations). The users studied are part of an elite of employees. This fact biases the results and conclusions. Individual Users  User Firms The innovation process is treated with excess simplicity. Process Optimization  Process Innovation