Broadcast Search in Problem Solving: Attracting Solutions from the Periphery1

The purpose of this study is to explore an alternative mechanism of problem solving that focuses on broadcasting problems to diverse and peripheral problem solvers, what I call broadcast search. Broadcasting problems is a radical departure from traditional problem solving as it involve problem holders engaging in as little problem-solving as possible - instead they attempt to interest a heterogeneous set of external actors in creating solutions to internal problems. Analysis of 166 previously unsolved science problems, originating from the R&D labs of 26 firms, revealed a 29.5% resolution rate via broadcast search. The probability of a problem being solved was significantly correlated with the heterogeneity in the scientific interests of the solvers submitting solutions and their relative specialization. Broadcast search also appears to be an economically efficient problem solving mechanism. It involves low costs for solution seekers relative to the costs of internal R&D. Most of the solvers based their submissions, partially or fully, on previously developed solutions from their own and/or someone else's work, implying an efficient re-use and transformation of existing knowledge and solutions