Crowdfunding as an Open Innovation for Co-Creation

Abstract

Crowdfunding is connected to innovation in many ways that go beyond being a new phenomenon in itself. This novel model for financing projects leverages the latest technologies provided by the Internet for purposes such as the creation of online communities and electronic payments. Additionally, the existence of crowdfunding platform helps creators bring their innovative products to the market in an unprecedented manner. Crowdfunding operates as an open innovation model where the middle part of the innovation funnel is open to providers of funds or funders that are involved in all stages of the new product. The purpose of this chapter is to identify and rate the contribution of crowdfunding to date in open innovation processes and, more specifically, its value in co-creation. Some examples of Spanish crowdfunding platforms and innovators are analyzed to illustrate these contributions.