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Updated: May 12, 2026

The Innovation Arena: A Method for Comparing Innovative Problem-Solving Across Groups

The Innovation Arena: A Method for Comparing Innovative Problem-Solving Across Groups

Published on: May 13, 2022

Using the crowd as an innovation partner.

Kevin J Boudreau¹, Karim R Lakhani

¹London Business School.

Harvard Business Review

|April 19, 2013

Summary

Organizations can leverage crowdsourcing for innovation by understanding when and how to best utilize external problem-solving. This approach, when strategically applied, can outperform internal research and development efforts.

Area of Science:

Business Strategy
Innovation Management
Organizational Behavior

Background:

Increasing adoption of crowdsourcing by major organizations.
Managerial caution due to perceived risks of external problem-solving.
Need to address concerns regarding intellectual property, integration, and costs.

Purpose of the Study:

To identify conditions under which crowdsourcing outperforms internal innovation.
To outline methods for tapping into crowd-powered problem-solving.
To provide a system for selecting the optimal crowdsourcing approach.

Main Methods:

Analysis of a decade of crowdsourcing studies.
Identification of four key crowdsourcing models: contests, collaborative communities, complementors, and labor markets.

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Development of a framework for choosing the appropriate model.

Main Results:

Crowdsourcing can be a powerful tool when managed effectively.
Different crowdsourcing models are suited for distinct types of problems.
Contests are effective for complex technical, scientific, and creative challenges, revealing the "technical frontier".

Conclusions:

Excluding crowdsourcing limits innovation potential.
Strategic implementation of crowdsourcing models can yield significant advantages.
Understanding the strengths of each model is key to successful external problem-solving.