Crowdfunding To Generate Crowdsourced R&D: The Alternative Paradigm Of Societal Problem Solving Offered By Second Generation Innovation And R&D

Abstract

In a global context of resource scarcity few incentives exist for firms to pursue innovations that provide social externalities if these are not inherently profitable. The purpose of this article is to present an alternative paradigm of societal problem solving entirely premised on second generation innovation processes. Further, a theoretical model of multidimensional, or three dimensional, knowledge creation is offered, together with the notion of a multiplier effect that relates to how knowledge creation can increase exponentially when knowledge is not constrained by proprietary requirements. Second generation innovation is based on probabilistic processes that utilize and maximize economies of scale in pursuit of problem solving. Two processes that contribute to the potential of second generation innovation to solve societal problems are crowdfunding and crowdsourcing. It is argued that the processes required to enable a new paradigm in societal problem solving already exist. A further model is developed based on potential synergies between crowdfunding and crowdsourced research and development. This theoretical model predicts that R&D productivity can be accelerated significantly, and if applied in fields such as proteomics or medical research in general can accelerated increases in research output and therefore benefits to society.