Limits of Radical Innovation in Networks

We have all gotten used to spectacular innovation breakthroughs over the last decades, especially in the field of information and communication technologies. We have also come to appreciate what seems like a continuous stream of incremental innovation coming to our information processing tools in the form of updates and point releases. The Internet is a most effective and efficient distribution mechanism for such incremental change. But is the Internet also facilitating radical innovation?

Not necessarily, as I+I Centre director Viktor Mayer-Schönberger has argued in a recent paper. He suggests that successful commercial vendors are held back by the desire to keep loyal a growing user base that is reluctant vis-a-vis radical changes. That is why Microsoft can't fundamentally rethink Word, even if it wanted to - hundreds of millions of users would likely revolt, or at least see this as an opportunity to consider alternatives.

Peer-produced open source software is not burdened to make a profit in the market, and thus its developers could be more risk-taking and innovative. They are held back, however, by the social networks of their community - users, bug reporters, bug fixers, contributors, and the testers, who have to constantly reconstruct among themselves a consensus of their shared purpose. This will put the focus of innovation on incremental changes and stability enhancements, rather than trying out radically new ideas - leading to a potentially inherent bias against more radical forms of innovation.

Policy makers intend to facilitate radical innovation will thus not only have to contend with financial incentives staked against such behavior but also social ones - and will be challenged to come up with solutions beyond existing monetary stimuli.

The paper, entitled "Can We Reinvent the Internet"?" has been published in the June 24 issue of SCIENCE.