1. Democratizing Innovations Nageshwar V G Neela

2. Concept of Lead Users They are defined as a group of people who are Ahead of the majority of population with respect to important market trend. Expecting to gain relatively high benefit from the solutions to the needs. e.g. Mountaineers, Cyclists, researchers.

3. Why users want custom products Limitations of the ‘Few size fits all’ strategy of companies High heterogeneity of need High willingness to pay

4. Users’ Innovate or Buy Decisions The decision to innovate or buy is highly dependent on ‘Agency cost’. i.e. Cost incurred to monitor the agent to follow the interests of principal Cost incurred by agent to adhere to the requirements of the principal Cost associated if the product outcome is different from the expected product

5. …cont. The requirements are highly varied for individual users Individual user-innovator enjoy the process of innovation

6. Users’ Low-Cost Innovation Niches Users and manufacturers innovation approaches are different Need based information and generic solution information Information is “Sticky” Innovation activity is distributed

7. Revealing the innovation: Is it the wise thing to do? Efficient use of resource in terms of social welfare Best and at only times the only practical solution possible Enhancement of reputation

8. Policy framework for User Innovation Requirement of a basic prototype for user led innovations Policy framework should be neutral in terms of innovation Proper usage of intellectual property as well as patents and copyrights Digital Millennium Copyright Act (US) and similar laws to be repelled