Emerging Business Models for Open Source Hardware

Abstract

To preserve their business model, companies have long protected their innovation processes with patents. « Open source hardware » (OSH) is, on the contrary, a collaborative product development process, where design plans and manufacturing "secrets" are accessible to all. In this context, building a drone to depollute oceans, connected beehives, or a water filter in « Open Source Hardware » (OSH) aims at creating solutions in a more rapid, efficient and inexpensive manner. But how can a sustainable economic model be developed when co-constructed innovations can be shared by all? The OSH phenomenon is not specific to a single sector, company or territory, but is indicative of much more global transformation. To understand the conditions necessary for the survival and growth of OSH, we conducted a qualitative study on twenty-seven projects to understand how they create value. Our results show that these initiatives are strongly focused on democratic values aimed at putting technology at the service of humanity. While these values are a powerful vector for federating actors, success is stalled in companies that do not adhere to them. These will primarily focus on the associated risks. Finally, we identified a diversity of possible and configurable revenues to be shaped according to an organization's strategic needs.