Are Lead Users More Successful Crowdfunders?

This paper addresses two of the core domains of the OUI symposium: Commercialization of lead user inventions and the opportunities of crowdfunding for a distributed innovation system. We utilize a large dataset of 850... [ view full abstract ]

This paper addresses two of the core domains of the OUI symposium: Commercialization of lead user inventions and the opportunities of crowdfunding for a distributed innovation system. We utilize a large dataset of 850 crowdfunding campaigns in Kickstarter to investigate whether projects requesting funding submitted by users with lead user characteristics are more successful than projects submitted by conventional entrepreneurs. In particular, we look how the desire of (user) entrepreneurs to solve their own open problems (high benefit expected) and their domain specific and technical skills, influence campaign success (have backers pledged the demanded amount of funding?) and the sum pledged by the backers. We further investigate whether the leading edge status of the invention (being ahead of the market), as expressed by the novelty and utility of the solution, influences crowdfunding success. We find that domain specific skills are positively related to the amount pledged, yet unrelated to achieving the self-set funding goal. Surprisingly, a high benefit expected from the product reduces the chances to achieve funding success. More innovative solutions do not reach the success milestone more often, but affect the amount positively. On the personal campaigner dimension, previous innovations are associated with higher chances to reach success and also increases the amount pledged. Similarly, technical expertise is also associated with both campaign success) and the amount pledged. Though, technological and business skills are unrelated to crowdfunding success.