Free Innovation

Free innovation is a grassroots innovation process in which self-rewarded household sector innovators develop and give away valuable innovations “for free.” I discuss how this growing phenomenon can be understood in terms... [ view full abstract ]

Free innovation is a grassroots innovation process in which self-rewarded household sector innovators develop and give away valuable innovations “for free.” I discuss how this growing phenomenon can be understood in terms of a new Free Innovation Paradigm. Unlike producer innovators, free innovators can disregard the extent of the market, and so are often innovation pioneers. Free innovation poses a steadily stronger rival and complement to traditional producer innovation. Their activities also raise social welfare. The implications of Free Innovation for producers and for society will be discussed.