Collaborative Innovation with Customers: A Review of the Literature and Suggestions for Future Research*

Collaborative innovation with customers or users is increasingly important for the development of new products and services. In this paper we provide a review of the literature, placing emphasis on how firms engage in collaborative innovation with individual and business customers. Our review develops a synthesized conceptual framework from three existing models, and other streams of research, to organize this diverse body of literature. We review studies from several disciplines including innovation, strategy, management, marketing and information technology. Although much of the literature assumes net positive benefits from such collaboration, we also discuss contrary perspectives. We highlight areas in which research is needed for greater understanding of the strategic issues and for managing the collaborative process, and provide suggestions for future studies.