This post is derived from Chapter 9 of “Governing Knowledge Commons” written by Sonali K. Shah and Cyrus C. M. Mody.
These researchers begin with an understanding that entrepreneurial motivations are generally coproduced with a number of factors – including contextual variables like the state of technology and the complexity of social and institutional structures.
To simplify their analysis they build upon a framework of four modes of individual and community complexity. They name these modes:
The Inventor Mode,
The Community Mode,
The Network Exchange Mode, and
The Commercial Mode.
Each mode represents distinct social structures associated with the innovation. Each mode fulfills different purposes in relations to the development and diffusion of innovation and serves unique types of participation with others. Each mode is constructed by participants as needs change and the innovation develops – they need not evolve in any particular order.
The Inventor Mode
In this mode there is only a single or small group of ‘inventors’ and generally no social structure involved. The individual or group tend to use their own resources and are focused on a particular problem or interest in developing something they see a need for. They are led to make efforts on innovation through prior technologies and innovations.
The Community Mode
In this mode a larger group (perhaps less than 50) of ‘modifiers’ have contacted the original innovators because they have taken up the original effort/innovation to replicate and use it. This mode becomes real as modifiers begin to well modify-innovate upon the original innovation through establishing connections amongst all participants. Almost all members are both users and producers of the innovation helping new members build their own versions.
Many inventions/innovations never transition into community mode. Community is challenging and thankless work. A key challenge can be the diluting of control over the original innovation. Some will want to move quickly to transition into a commercialization of the innovation. Others will want to establish standardization which can lead to a transition to a ‘Network Exchange Mode’.
The Network Exchange Mode
Not all members of the community mode want to build their own version and seek to find a member who can build all or some of the innovation. Some members of the community offer to build kits. When this starts to happen it represents a shifting to network exchange mode.
While this mode embodies features of both industry/commercialization and community mode it is also significantly different than both. The network exchange mode requires that the innovation be sufficiently easy to replicate and use. However, no one is able to make a living building kits or copies for new users or even to provide full versions. Often new members don’t even pay for their kits or parts they receive.
The Commercial Mode
This is perhaps the most familiar mode, when firms are created to sell the innovation to consumers without the time, skill or interest in making/building their own. In thins mode almost all new members/users are consumers whose relationships with producers are transactional. The innovation has developed to the point where it is attractive to consumers – offering reliable and user-friendly service. There is often plenty of consumers who are capable of modifying to customize the innovation to their own use.
This mode is characterized with standardization of design and use in order to achieve economies of scale and scope.
Considerations
In the journey of innovation from invention to community to network-exchange and commercialization development has to include the costs of the learning curve and include the work necessary to establish community-consumer literacy and knowledge for the innovation to be implemented as a product.
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