The trend toward democratised innovation can be seen in software and information products most notably in the free and opensource software movement but also in physical products. Applying innovation is the application of practical tools and techniques that make changes, large and small, to products, processes, and services that results in the introduction of something new for the organization that adds value to customers and contributes to the knowledge store of the organization. We now examine the full equilibrium effects of a merger on innovation. Drawing on work done with several coauthors, i explore why and when users find it profitable to develop new products and services for themselves, and why it often pays users to reveal. Jasig merger enhances our network openness is not only a product of collaboration, but a precondition for collaboration a key value aggregation of resource alliances, and partnerships.
Horizontal merger guidelines hmg one of the effects to be analysed in merger control is the effect on innovation, putting the competitive harm caused by a reduction of innovation on an equal footing with price increases, or a reduction of output, choice or quality of goods and services. The horizontal merger guidelines discussion of innovation makes clear that we look at both sides of a market in the merger enforcement context. In democratizing innovation i look closely at this emerging usercentered innovation system, which is affecting both information products and physical products. It is now widely believed that merger policy must move beyond its traditional focus on shortrun, price and output effects to account for. Keynote speaker john fisk, director of the wallace center at winrock international, began the session by defining democratizing innovation as scaling innovations with the purpose of enabling self determination. Innovation can play an important role in the analysis of mergers in digital markets, particularly in twosided markets where a traditional pricebased approach to competition analysis may be ineffective. In addition to the rights under that license, i also give permission for all commercial uses that do not involve making derivative works or printing physical copies. To ignore the effects of a merger on innovation, in particular, would understate the importance of future competition scotchmer, 1991. Maintaining innovation through mergers and acquisitions. This implies that total innov ation falls after the merger. The concept of innovation innovation concepts and innovation policy webinar may 20th 2015 german aerospace centre project management agency, dlrpt heinrichkonenstr. Horizontal mergers and product innovation request pdf. Equilibrium impact of a merger on innovation efforts. It is now widely believed that merger policy must move beyond its traditional focus on shortrun, price and output effects to account for longerrun effects on technological innovation.
Innovate keeping innovation in the mix after the merger worried what will happen to your companys creative spark after getting acquired. Women in usa pdf of the book creative commons license free mobile format download kindle purchase a print copy from amazon democratizing innovation 2005 download a free pdf of the book creative commons license free mobile format download kindle download a free chinese translation of the book. In all our reported simulations we assume that innovation effort translates into a probability of innovation according to the following function x w i 1. The merger would create market power for existing products a separate reason to challenge the transaction the merger combines separate products or services, both of which would be at risk from innovation e.
Participatory design and democratizing innovation conference paper pdf available. Almost 30 years ago, researchers began a systematic study of innovation by end users and user firms. The key results from the model are that a merger has i a negative e ect on the merged entitys in. How citizens create and share innovations download a free pdf of the book creative commons license free mobile format download kindle purchase a print copy from amazon democratizing innovation 2005 download a free pdf of the book creative commons license free mobile format download kindle download a free chinese translation of the book. He explains why and when users find it profitable to develop new products and services for themselves, and why it often pays users to reveal their innovations freely for the use of all. Horizontal mergers and product innovation sciencedirect. Today, it is clear that usercentered innovation is a. Justus haucap is the director of the dusseldorf institute for competition economics in germany. Horizontal merger guidelines hmg one of the effects to be analysed in merger control is the effect on innovation, putting the competitive harm caused by a reduction of innovation on an equal footing with price increases, or a reduction of output, choice or quality of. Pdf participatory design and democratizing innovation. Today, it is clear that usercentered innovation is a very powerful and general phenomenon. Main types of innovation 1 a product innovation is. In order to explore the link between the effects of a merger and the reasons and expectations behind the transaction, we use a treatment. The authors find that the overall impact of a merger on innovation can be either positive or negative.
At that time, the phenomenon was generally regarded as a minor oddity. At that time, the phenomenon was generally regarded as a. A merger can increase the profits at risk from innovation because. In this paper, we examine the developing role of innovation in u. This work is licensed under the creative commons noncommercial nonderivatives license. Main types of innovation 1 a product innovation is the introduction of a good or service that is new or. Among the panels was a session dedicated to democratizing innovation. Users do it themselves rather than hiring a customizer because of agency costs i. Users, aided by improvements in computer and communications technology, increasingly can develop their own new products and services. Part ii gives a brief history, and an account of the current status.
Guidelines, the gilbert and sunshine model draws substantially from the 1992horizontal merger guidelines for both the structure and the substance of its innovation market inquiry. Jan 15, 2016 democratizing innovation and investment. A product innovation is the act of bringing something new to the market place that improves the range and quality of products on o. He has been a member of the german monopolies commission from 2006 to 2014 and chaired the. Download it once and read it on your kindle device, pc, phones or tablets. Use features like bookmarks, note taking and highlighting while reading democratizing innovation the mit press.