http://timkastelle.org/blog/2009/09/the-price-of-free-leads-to-innovation/ Designed in Brisbane by Tim Kastelle & John Steen Fri, 10 Feb 2012 06:15:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://timkastelle.org/blog/2009/09/the-price-of-free-leads-to-innovation/comment-page-1/#comment-4725 What Open Innovation Is Not « Innovation « Innovation Leadership Network Thu, 11 Mar 2010 10:12:38 +0000 http://timkastelle.org/blog/?p=475#comment-4725 [...] give away technology and ideas as part of their innovation strategy. As Tim has said previously, free can be a valid business model in the right [...] [...] give away technology and ideas as part of their innovation strategy. As Tim has said previously, free can be a valid business model in the right [...]

]]> http://timkastelle.org/blog/2009/09/the-price-of-free-leads-to-innovation/comment-page-1/#comment-4639 We Have to Connect Ideas to Connect to People « Book Riffs « Innovation Leadership Network Mon, 08 Mar 2010 00:09:00 +0000 http://timkastelle.org/blog/?p=475#comment-4639 [...] up arguing against a number of ideas that are currently popular, such as the discussion around the role of ‘free’ in business models, commons-based intellectual property initiatives, and the idea Moore’s Law will inevitably [...] [...] up arguing against a number of ideas that are currently popular, such as the discussion around the role of ‘free’ in business models, commons-based intellectual property initiatives, and the idea Moore’s Law will inevitably [...]

]]> http://timkastelle.org/blog/2009/09/the-price-of-free-leads-to-innovation/comment-page-1/#comment-1644 Cory Doctorow’s great experiment « Business Models « Innovation Leadership Network Wed, 21 Oct 2009 23:19:47 +0000 http://timkastelle.org/blog/?p=475#comment-1644 [...] already know that giving stuff away can be an important part of building an effective revenue generation mechanism – and it seems [...] [...] already know that giving stuff away can be an important part of building an effective revenue generation mechanism – and it seems [...]

]]> http://timkastelle.org/blog/2009/09/the-price-of-free-leads-to-innovation/comment-page-1/#comment-1327 free news? « Business Models « Innovation Leadership Network Sat, 26 Sep 2009 00:53:09 +0000 http://timkastelle.org/blog/?p=475#comment-1327 [...] in real time. And a critical industry at that. We’re seeing all of the issues that surround the idea of free coming together in one place – and it’s leading to a lot of innovation, especially in [...] [...] in real time. And a critical industry at that. We’re seeing all of the issues that surround the idea of free coming together in one place – and it’s leading to a lot of innovation, especially in [...]

]]> http://timkastelle.org/blog/2009/09/the-price-of-free-leads-to-innovation/comment-page-1/#comment-1302 Tim Thu, 24 Sep 2009 22:23:49 +0000 http://timkastelle.org/blog/?p=475#comment-1302 That's a good example Marco - and addressing that problem is one of the fundamental issues that people looking at innovation systems have been grappling with for a while... I just read this: "The Economist? Clay allows that the paywall might work in financial news because value comes from scarcity… but he points out that the Economist’s opinion pages are put outside the firewall so they can be amplified and have influence." which is summarising a talk that Clay Shirky gave earlier this week, and I thought of our discussion here. That’s a good example Marco – and addressing that problem is one of the fundamental issues that people looking at innovation systems have been grappling with for a while… I just read this: “The Economist? Clay allows that the paywall might work in financial news because value comes from scarcity… but he points out that the Economist’s opinion pages are put outside the firewall so they can be amplified and have influence.” which is summarising a talk that Clay Shirky gave earlier this week, and I thought of our discussion here.

]]> http://timkastelle.org/blog/2009/09/the-price-of-free-leads-to-innovation/comment-page-1/#comment-1301 Marco Thu, 24 Sep 2009 22:13:04 +0000 http://timkastelle.org/blog/?p=475#comment-1301 Tim, I agree. But it seems that the money is made from an ability to "context switch" ideas (from academic to general public or to corporate) rather than from the ideas themselves. (But I suppose most forms of innovation are -really- context switching). The particular example I had in mind is our local universities (rather than individual researchers) which are great at generating new knowledge but hopeless at making money out of it. The reason, I think, is that they lack a reliable mechanism that transfers knowledge from an academic context to a business context (which makes its innovation effort haphazard and accidental). Tim,
I agree. But it seems that the money is made from an ability to “context switch” ideas (from academic to general public or to corporate) rather than from the ideas themselves. (But I suppose most forms of innovation are -really- context switching).
The particular example I had in mind is our local universities (rather than individual researchers) which are great at generating new knowledge but hopeless at making money out of it. The reason, I think, is that they lack a reliable mechanism that transfers knowledge from an academic context to a business context (which makes its innovation effort haphazard and accidental).

]]> http://timkastelle.org/blog/2009/09/the-price-of-free-leads-to-innovation/comment-page-1/#comment-1284 Tim Thu, 24 Sep 2009 06:25:01 +0000 http://timkastelle.org/blog/?p=475#comment-1284 Marco, I agree with everything right up to your final conclusion. One of Anderson's key points is that getting the ideas to spread widely and profiting from them don't have to be mutually exclusive - but that the way to address this is to build a business model that does both. For example, you get the basic idea to spread quickly by making it free, but you profit from applying the ideas in specific contexts. To keep using the example of James Watson, the original publication was freely available (at least to scholars with good libraries!), but he made plenty of money from writing books, speaking engagements, and in grants to the Cold Spring Harbor Lab when he was Director there. Building these models is challenging, but that's what makes it innovation! Marco, I agree with everything right up to your final conclusion. One of Anderson’s key points is that getting the ideas to spread widely and profiting from them don’t have to be mutually exclusive – but that the way to address this is to build a business model that does both. For example, you get the basic idea to spread quickly by making it free, but you profit from applying the ideas in specific contexts. To keep using the example of James Watson, the original publication was freely available (at least to scholars with good libraries!), but he made plenty of money from writing books, speaking engagements, and in grants to the Cold Spring Harbor Lab when he was Director there. Building these models is challenging, but that’s what makes it innovation!

]]> http://timkastelle.org/blog/2009/09/the-price-of-free-leads-to-innovation/comment-page-1/#comment-1282 Tweets that mention the price of free leads to innovation « Book Reviews « Innovation Leadership Network -- Topsy.com Thu, 24 Sep 2009 05:07:28 +0000 http://timkastelle.org/blog/?p=475#comment-1282 [...] This post was mentioned on Twitter by Ronan Vance. Ronan Vance said: Reading "The price of free leads to innovation" by @timkastelle http://bit.ly/Op5Hb Good (free) links to explore on subject. [...] [...] This post was mentioned on Twitter by Ronan Vance. Ronan Vance said: Reading "The price of free leads to innovation" by @timkastelle http://bit.ly/Op5Hb Good (free) links to explore on subject. [...]

]]> http://timkastelle.org/blog/2009/09/the-price-of-free-leads-to-innovation/comment-page-1/#comment-1281 Marco Thu, 24 Sep 2009 03:41:38 +0000 http://timkastelle.org/blog/?p=475#comment-1281 One might argue that information is both free and expensive depending on the right context. For instance, in Science (I am stereotyping here but bear with me) information wants to be free because information gets more valuable as it is more widely disseminated. For example, if I come up with a way to refute the second law of thermodynamics tomorrow and I keep it all to myself, this information is worthless. But if I disseminate it widely and it stands scrutiny, it becomes valuable and I win a Nobel prize. On the other hand, if I invent a perpetual motion technology based on my new scientific discovery (which I kept secret), the information becomes very expensive because no one knows how I did it. This, I think, gives a neat distinction between science and applied science (or technology). The tension arises when people want to have it both ways: disseminate knowledge widely and yet somehow privatise the benefits. One might argue that information is both free and expensive depending on the right context.
For instance, in Science (I am stereotyping here but bear with me) information wants to be free because information gets more valuable as it is more widely disseminated. For example, if I come up with a way to refute the second law of thermodynamics tomorrow and I keep it all to myself, this information is worthless. But if I disseminate it widely and it stands scrutiny, it becomes valuable and I win a Nobel prize.
On the other hand, if I invent a perpetual motion technology based on my new scientific discovery (which I kept secret), the information becomes very expensive because no one knows how I did it.
This, I think, gives a neat distinction between science and applied science (or technology). The tension arises when people want to have it both ways: disseminate knowledge widely and yet somehow privatise the benefits.

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