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"Pathbreaking research by a group of scholars including Eric A. von Hippel, a professor of technological innovation at M.I.T.'s Sloan School of Management, suggests that the traditional division of labor between innovators and customers is breaking down. Financed by the British government, Mr. von Hippel and his colleagues last year completed the first representative large-scale survey of consumer innovation ever conducted. What the team discovered, described in a paper that is under review for publication, was that the amount of money individual consumers spent making and improving products was more than twice as large as the amount spent by all British firms combined on product research and development over a three-year period. "We've been missing the dark matter of innovation," Mr. von Hippel said from his office in Cambridge, Mass. "This is a new pattern for how innovations come about." "

von Hippel and Baldwin also produced a related, intriguing paper in 2009 that can be found here http://hbswk.hbs.edu/item/6325.html entitled "Modeling a Paradigm Shift: From Producer Innovation to User and Open Collaborative Innovation." The conclusion of the paper reads: "We conclude by observing again that we belive we are in the midst of a major paradigm shift: technological trends are causing a change in the way innovation gets done in advanced market economies. As design and communication costs exogenously decline, single user and open collaborative innovation models will be viable for a steadily wider range of design. They will present an increasing challenge to the traditional paradigm of producer-based design - but, when open, they are good for social welfare and should be encouraged."

Customer-orientation and vision need to complement each other in order to stimulate breakthrough innovation. A visionary approach is essential to secure long-term success as well as to provide truly differentiating offerings to the market. However, this vision cannot be defined in a vacuum without customer insights. These insights are gained through shifts in focus from solutions to needs and broad understanding of customer's context, andmarket majorities to minorities, i.e. unserved consumers with dedicated needs.This leads me to the following conclusion: Innovation based on needs of edge customers tends to result in higher likelihood of breakthroughs than involving average customers in solution development. When it comes to breakthrough innovation, a customer-centered vision seems to be indicated.

The researchers argue that as design and communication costs decline, single user and open collaborative innovation models will be viable for a steadily wider range of design. These two models will present an increasing challenge to the traditional paradigm of producer-based design-but, when open, they are good for social welfare and should be encouraged by policymakers.

Chance favors the connected mind. That is what author Steven B. Johnson says to those looking for the next big idea. Johnson is the author of "Where Ideas Come From" a book that looks at the macro trends on how innovation evolves. Ideas are rarely created through a "eureka" moment. It may seem like Doc Brown fell off his toilet and invented the flux capacitor, but really the idea for time travel and how to do it were converging in his brain for quite some time before the blow to head. Instead of an "aha!" moment, Johnson believes that ideas are born of a "slow hunch" that are made possible through periods of technological innovation and evolution. If you are creating a startup, where do you get your ideas from?

In Innovation Deep Dive, Lisa Strausfeld from Pentagram has contrasted the drivers and the impact of innovation of various countries by way of an interactive line ranking. The visualization uses quite a large set of different datasets, ranging from Gallup and business schools reports, to the usual suspects like the UNESCO and the World Bank. The interface requires some trial-and-error to get used to (e.g. the data categories at the top are clickable), but creates a compelling overview of how different nations actually perform versus how their business executives perceive the same issue.

More and more executives are experimenting with open innovation initiatives. Stefan Lindegaard outlines some potential knock-on effects-both good and bad.

Business bloggers at Harvard Business Review discuss a variety of business topics including managing people, innovation, leadership, and more.

Nowadays, goes the theory, innovation is supposed to be constantly improving everything the company is about. Is the theory right, or do the experiences of companies reveal something different?

"Twitter is a great communication channel and as such, you do find a lot of self-promotion and name dropping. But there is so much more to Twitter. The comment got me thinking, would the critics feel the same if they could see more innovative ways to use it?"

The study found that arts and crafts activities - such as painting, dancing and filmmaking - are closely related to success of the scientists, engineers and other innovators who create new companies and inventions that stimulate the economy. Yet during the past decade Michigan has cut funding for the arts by some 90 percent - from about $25 million in 2002 to $2.3 million this year. In Detroit, officials attempting to balance the budget have proposed large cuts to the city's arts and cultural institutions.

Scientists and engineers who produce innovative work aren't in it just for the money, according to researchers from Duke University and the Georgia Institute of Technology.

There were many successes, but far too many more failures in this endeavor. Why? Companies absorbed the process of Design Thinking all to well, turning it into a linear, gated, by-the-book methodology that delivered, at best, incremental change and innovation. Call it N+1 innovation. Above all, CQ is about abilities. I can call them literacies or fluencies. If you walk into one of Katie Salen's Quest to Learn classes or a business strategy class at the Rotman School of Management, you can see people being taught behaviors that raise their CQ. You can see it in the military, corporations, and sports teams. It is about more than thinking, it is about learning by doing and learning how to do the new in an uncertain, ambiguous, complex space--our lives today.

Walmart, the world's largest retailer, embraces social, mobile, and the startup spirit to compete against Amazon. Will it be enough?

"Open centers of grassroots innovation, hackerspaces offer opportunities to source talent, create goodwill, and push technology forward"

Great quote: "Creativity comes from being willing and able to look past the first idea or concept that comes into our heads."

what does "social" really mean? It's become a phonetic clue that whatever follows in speech is now connected, via the Internet, to a collaborative application. If that's even close to accurate, then as marketers we're way past "social media" as a thing to do. Instead, "social media" is firmly part of markets, customer tastes, and business innovation cycles. What's more, entire organizations are governed more by consensus than individual dictum.