Paper Presentation - “Sticky Information and the Locus of Problem Solving: Implications for Innovation" from Eric von Hippel - MS 1994

1. “Sticky Information” and the Locus
of Problem Solving: Implications for
Innovation
- Eric von Hippel -
Week 6, Feb 23: Division of labour in invention
by Jonas Rolo and Paul van der Boor

2. Main Contributions
• Concept of Sticky information
• Brings together the needed information and the
problem solving capabilities
• Addresses the discussion to the effects of
information stickiness and not to its causes

3. Sticky Information
• Incremental expenditure required to transfer
that unit of information
• Stickiness has a broad sense
• Sources of Stickiness:
• Nature of the information
• Amount of information
• Related information and skills from receiver
• Attributes and choices from the transmitter and
receiver

4. Conclusions
How stickiness affects the locus of innovation:
1. Centered around sticky locus
2. Iteration
3. Division of Innovation Labour
4. Efforts to ‘unstick’

5. Strengths
• Nice ‘Codification’ of ‘sticky information’
• Proposes introduction of stickiness as a
measure/parameter of information.
• Convincing idea that locus is where the
information/resources is.
• Opens up room for discussion

6. Weaknesses
• Locus depends only on information
• What about non-information assets related to
innovation activities?
• What if stickiness = 0?

7. Link to Other readings
• Arora – Markets for Technology
• Winter – Knowledge as strategic assets
• Hounshell – Fiber Industry
• Vincenti – Engineering Methods

8. Assignment
Assignment: Smith, Stigler and Bresnahan and Gambardella claim that the
division of inventive labor is limited by the extent of the market.
However, the division of inventive labor also encourages entry into the
product market. Therefore, the extent of the market is also limited by
the division of inventive labor. Comment.
• Stickiness as a factor of variation
• How sticky does a market wants its
information?
• Market for knowledge
• Dependent on each other