how to (crowd-)fund and manage the (user-)innovation: the case of big buck bunny

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Background Creative Commons Main questions Literature Data Model Conclusion How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest Organizations, Institutions and Innovation in the ICT sector: Where do we stand? Paris June, 25-26 2012 Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

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Page 1: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

How to (Crowd-)Fund andManage the (User-)Innovation:The case of Big Buck Bunny

Massimiliano [email protected]

EconomiX, University Paris Ouest

Organizations, Institutions and Innovation in the ICT sector:

Where do we stand?

Paris June, 25-26 2012

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 2: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

Introduction

The Non-Senses

It seems a non-sense that:

a producer decides to invest in a different industry without anadvantage

a producer assembles, manages and pays experts to produce aquasi-public good (non-rival & non-excludable)

experts decide to work underpaid

customers decide to pay for a freely available product

...this is what happened to produce Big Buck Bunny

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 3: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

Introduction

Blender Foundationstarted in october 2007published in april 2008diffused in may 2008150.000 e6 months9 team members

(6 artists and 3 developers)

30 e: credits250 e: main sponsorCreative Commons - by

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 4: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

Licenses

Formal Institution

All organization structures are based on Formal Institutions:

understandable

accepted

shared

...Creative Commons licenses represent the Formal Institution

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 5: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

Licenses

Creative Commons licenses

These licenses allow creators to communicate which rights theyreserve, and which rights they waive for the benefit of recipients orother creators

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 6: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

Licenses

Clauses

1 Attribution alone (by)

2 Attribution + Non-commercial (by-nc)

3 Attribution + NoDerivs (by-nd)

4 Attribution + ShareAlike (by-sa)

5 Attribution + Non-comm. + NoDerivs (by-nc-nd)

6 Attribution + Non-comm. + ShareAlike (by-nc-sa)

7 (Public Domain) (PD)

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 7: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

Questions

How to absorb User-Innovation

how to start it

how to manage User’s contributions (funds)

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 8: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

User-Innovation

User-Innovation

...end of value chain

describes how user-innovations are organized

new products from 10% to 40% of users (in differentindustries)

users tend to use Communities

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 9: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

User-Innovation

Horizontal User-Innovation

* von Krogh - http://www.smi.ethz.ch/research/CollaborativeInnovation

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 10: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

User-Innovation

The Crowd

Crowdsurcing: feedback and contribution

Crowdfunding: use the “crowd” to raising money from it

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 11: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

User-Innovation

Motivations

1 Extrinsic Monetary Motivations

administrative commands; monetary

2 Extrinsic Non-Monetary Motivations

reputation; career concerning; peer recognition; sharinginnovation

3 Intrinsic Motivations

activity itself; ego gratification; need

...the extrinsic non-monetary and intrinsic motivations compensatefor a lower salary and incentivise volunteering and donations

* Gambardella, M. 2011. The Scope of Open Licenses in Cultural Contents Production and Distribution

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 12: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

User-Innovation

Characteristics

urestrictive licenses

non-profit legal status

...tend to attract users’ efforts

* Gambardella, M. 2011. The Scope of Open Licenses in Cultural Contents Production and Distribution

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 13: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

Survey

“Grounded Theory” Approach

qualitative analysis

15 interviewd3 members of the team

Ton Roosendal - Leader & ProducerEnrico Valenza - Lead ArtistAndy Goralczyk - Art Director

12 members of Blender Community

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 14: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

Propotition

A three-phase process of innovation

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 15: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

Conclusion

Two different communities form the whole BlenderCommunity

Artists and Developers are not really able to communicateeach other

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 16: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

Conclusion

Step 1

Creative Commons

encourages Crowdfunding and Crowdsourcing

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 17: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

Conclusion

Step 2

The Team was able to

innovate (horizontal user-innovation)

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 18: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

Conclusion

Step 3

Blender Foundation was able to

absorb innovations

...“Bunny Release” of Blender (2.46)

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Page 19: How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny

Background Creative Commons Main questions Literature Data Model Conclusion

Conclusion

Thank youfor your attention!

Comments? Questions?

Massimiliano GAMBARDELLA

EconomiX, University Paris [email protected]

This document is under Creative Commons license 3.0 Attribution -

*picture undercc-by-nd 2.0

Massimiliano Gambardella [email protected] EconomiX, University Paris Ouest

How to (Crowd-)Fund and Manage the (User-)Innovation: The case of Big Buck Bunny