stepping up the game – the role of innovation in the sharing ......sharing economy on the rise...
TRANSCRIPT
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11 November 2016, Stockholm
Vera Demary
Stepping up the game – the role of innovation in the sharing economy
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Outline
► SETTING THE SCENE
► INNOVATION IN THE SHARING ECONOMY
► COMPETITION EFFECTS
The role of innovation in the sharing economy
What is innovative about the sharing economy?
Page 2
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Outline
► SETTING THE SCENE
► INNOVATION IN THE SHARING ECONOMY
► COMPETITION EFFECTS
The role of innovation in the sharing economy
What is innovative about the sharing economy?
Page 3
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Sharing economy on the rise
Source: Google Trends, 2016
The role of innovation in the sharing economy
Number of Google searches relative to highest number during the period, yearly average, maximum: 100, as of 04-11-2016
Page 4
Diagram1
2011201120112011
2012201220122012
2013201320132013
2014201420142014
2015201520152015
2016201620162016
USA
UK
Germany
Sweden
2.375
5
0.75
0
2.2641509434
6.1509433962
2.6981132075
4.358490566
5.4230769231
6.3846153846
9.6538461538
10.4230769231
10.75
13.25
16.7307692308
31.0192307692
19.3269230769
23
26.1730769231
42.3846153846
18.4318181818
28.0909090909
26.0909090909
43
Tabelle1
Spalte1USAUKGermanySweden
20112.385.000.750.00
20122.266.152.704.36
20135.426.389.6510.42
201410.7513.2516.7331.02
201519.3323.0026.1742.38
201618.4328.0926.0943.00
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Sources: Fotolia – chagin, Jana Behr, iStock - 105282885
Narrow definition Components
The role of innovation in the sharing economy
Page 5
Sharing
Peer to peer
Digital intermediation
All economic activities among
individuals that focus on using assets
instead of owning them.
What is the sharing economy?
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What is innovation?
The role of innovation in the sharing economy
Page 6
• Transformation of ideas into new/improved products, services or processes What
• Multi-stage process How
• Organizations or individuals Who
• Advance, compete or differentiate themselves successfully in their market or enhance social outcomes
Why
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Some additional thoughts on innovation
IDEA
Setting 1
Setting 2
Setting 3
• Overthrowing existing structures, business models and consumer bases in exchange for a novel way to cater to consumers‘ needs
Disruptive innovation
• Discovery of a fundamentally different business model in an existing business
Business model innovation
The role of innovation in the sharing economy
Page 7
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Outline
► SETTING THE SCENE
► INNOVATION IN THE SHARING ECONOMY
► COMPETITION EFFECTS
The role of innovation in the sharing economy
What is innovative about the sharing economy?
Page 8
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Sharing platforms and patents
Source: DEPATISnet, 2016
The role of innovation in the sharing economy
Number of worlswide patent applications, adjusted for patent families and registered designs, as of 30-09-2016
Page 9
Diagram1
Uber
HomeAway
Airbnb
Lyft
Prosper
Datenreihe 1
52
12
11
2
1
Tabelle1
Datenreihe 1Datenreihe 2Datenreihe 3
Uber52
HomeAway12
Airbnb11
Lyft2
Prosper1
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Business model: Online platform
Only truly innovative in a few markets
The role of innovation in the sharing economy
Page 10
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Business model: P2P online platform
Large part of the sharing economy‘s innovativeness
The role of innovation in the sharing economy
Page 11
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The micro perspective
The role of innovation in the sharing economy
Individual sharing platforms‘ innovativeness
Page 12
• Bringing the first P2P business model to a market First mover
• Applying the P2P model to different products / services and locations Cloning ideas
• Copying competitor‘s approach Non-innovative platforms
• Often in form of software to improve experience or simplify doing business
Technological innovation
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Steps of disruptive innovation
Creation of product or service
Occupation of niche in a market
Improvement of product or service
Attracting mainstream market
Entrenchment of mainstream market
The role of innovation in the sharing economy
Example: Airbnb (Guttentag, 2015)
Page 13
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Outline
► SETTING THE SCENE
► INNOVATION IN THE SHARING ECONOMY
► COMPETITION EFFECTS
The role of innovation in the sharing economy
What is innovative about the sharing economy?
Page 14
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Effects on competition
The role of innovation in the sharing economy
Sharing platforms versus traditional incumbents
Page 15
P2P business model
Market entry Increased competition Innovation incentive
incumbents and entrant
Threat of market entry
Innovation incentive incumbents
Network effects Economies of scale
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Effects on competition
Race for the market
Decisive factors: • Raised capital • Innovativeness • Costs
The role of innovation in the sharing economy
Competition among sharing platforms
Page 16
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How to regulate the sharing economy?
Fostering competition
and innovation
Regulating to avoid market failure
Interests of the
incumbents
Interests of the sharing platforms
The role of innovation in the sharing economy
Page 17
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Contact
Dr Vera Demary Head of Research Unit „Structural Change and Competition“ +49 221 4981-749 [email protected]
Stepping up the game – the role of innovation in the sharing economyOutlineOutlineSharing economy on the riseWhat is the sharing economy?What is innovation?Some additional thoughts on innovationOutlineSharing platforms and patentsBusiness model: Online platformBusiness model: P2P online platformThe micro perspectiveSteps of disruptive innovationOutlineEffects on competition Effects on competition How to regulate the sharing economy?Contact