Agent-based Analysis of Lead User Innovation in Consumer Product Market

  • Kotaro Ohori
  • Shingo Takahashi
Part of the Springer Series on Agent Based Social Systems book series (ABSS, volume 6)


In this paper we focus on some phenomena generated by lead user innovation and build a market model based on the lead user’s features that are derived from the conventional studies. Then we consider market mechanism and dynamics of the market with the lead user innovation. The innovation changes a conventional market concept that consumers and firms are entities that respectively demand and supply products. It is hard for marketers and managers to comprehend the market dynamics and mechanism generated by the change of market invoked by the innovation. Our simulations with the market model show two propositions: 1) If firms take the conventional strategies based only on conventional marketing strategies and technology management, lead user innovation takes the high market share from firms’ products. 2) If firms focus on an innovation community as a new strategy, they can manage lead user innovation.


Market Share Product Space Internal Model Market Model Evolutionary Learn 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. [1]
    Baker, J. E. (1985). Adaptive selection methods for genetic algorithms. Proceedings of the First International Conference on Genetic Algorithms and Their Applications, 1, 101–111.Google Scholar
  2. [2]
    Barabsi, A. L., & Albert R. (1999). Emergence of scaling in random networks. Science, 286, 509–512.CrossRefGoogle Scholar
  3. [3]
    Christensen, C. M. (1997). The Innovator’s Dilemma, when new technologies cause great firms to fail. US: Harvard Business School Press.Google Scholar
  4. [4]
    Franke, N., & Shah S. (2003). How communities support innovative activities: an exploration of assistance and sharing among end-users. Research Policy, 32, 157–178.CrossRefGoogle Scholar
  5. [5]
    Lüthje, C. (2004). Characteristics of innovating users in a consumer goods field; An empirical study of sport-related product consumers. Technovation, 24, 683–695.CrossRefGoogle Scholar
  6. [6]
    Luthje, C,. Herstatt, C, & von Hippel E. (2005). User-innovators and local information: The case of mountain biking. Research Policy, 34, 951–965.CrossRefGoogle Scholar
  7. [7]
    Morrison P. D., Roberts J. H., & von Hippel E. (2000). Determinants of User Innovation and Innovation Sharing in a Local Market, Management Science, 46, 1513–1527.Google Scholar
  8. [8]
    Raymond E. S. (2000). The Cathedral and the Bazaar, writings/cathedral-bazaar/cathedral-bazaar/Google Scholar
  9. [9]
    Takahashi, S., & Ohori, K. (2005). Agent-based Model of Revolutionary Processes of Firms Technologes and Consumer Preferences. NAACSOS Conference.Google Scholar
  10. [10]
    Uchida, M., & Shirayama, S. (2006). Analysis of Network Structure and Model Estimation for SNS. Transactions of Information Processing Society of Japan, 47, 2840–2849.Google Scholar
  11. [11]
    Vazquez, A. (2003). Growing network with local rules: Preferential attachment, clustering hierarchy, and degree correlations. Physical Review, 67.Google Scholar
  12. [12]
    von Hippel, E. (2005). Democratizing Innovation. US: MIT Press.Google Scholar
  13. [13]
    Urban, G. L., & von Hippel, E. (1998). Lead User Analyses for the Development of New Industrial Product. Management Science, 34, 569–582.CrossRefGoogle Scholar
  14. [14]
    von Krogh, G.S., Spaeth, S., & Haefliger, S. (2005). Knowledge Reuse in Open Source Software: An Exploratory Study of 15 Open Source Projects. Proceedings of the 38th Annual Hawaii International Conference on System Sciences, 198–207.Google Scholar

Copyright information

© Springer 2009

Authors and Affiliations

  • Kotaro Ohori
    • 1
  • Shingo Takahashi
    • 1
  1. 1.Department of Industrial and Management Systems EngineeringWaseda UniversityShinjukuTokyo

Personalised recommendations