Value creation in open-source hardware communities: Case study of Open Source Ecology

Technical progress in production technology, the advancement and spread of information and communication technologies (ICT) as well as the spill-over of the highly efficient and innovative open source principles to the world of physical products represent a new set of tools and concepts to address the challenges of sustainable economic development. Correspondingly, we can observe (new) modes of value creation that put into question traditional economic strategies and assumptions by stressing collaboration instead of competition and knowledge sharing instead of black box engineering. Open Source Ecology (OSE) is a famous example of a nonprofit organization which fosters worldwide participation and collaboration to jointly develop open source hardware for operation in both developing and industrialized countries. Based on the concepts open source appropriate technology (OSAT), the community aims at the free access to the knowledge and knowhow of low-cost and easy-to-build products to empower people to build and run a civilization. This case study describes and analyzes the value creation processes of OSE and derives new opportunities for business models based on openness.