--- title: "Meaning & Key Takeaway of: Second, lead users are a much broader…" description: "\"“Second, lead users are a much broader category than customers of a specific firm, and many have incentives that differ from those of customers. Lead u..." image: "https://sms4smile.com/quotes/i/4a6/eric-von-hippel-11175_investing_second-lead-users-are-a-much-broader-cat_3163814.jpg" --- # Second, lead users are a much broader category than… ![“Second, lead users are a much broader category than customers of a specific firm, and many have incentives that differ from those of customers. Lead users generating innovations of interest to manufacturers can reside, as we have seen, at the leading edges of target markets, and also in advanced…” quote by Eric von Hippel](https://sms4smile.com/quotes/i/4a6/eric-von-hippel-11175_investing_second-lead-users-are-a-much-broader-cat_3163814.jpg) [Download](https://sms4smile.com/quotes/i/4a6/eric-von-hippel-11175_investing_second-lead-users-are-a-much-broader-cat_3163814.jpg) [Open image](https://sms4smile.com/quotes/i/4a6/eric-von-hippel-11175_investing_second-lead-users-are-a-much-broader-cat_3163814.jpg) > ““Second, lead users are a much broader category than customers of a specific firm, and many have incentives that differ from those of customers. Lead users generating innovations of interest to manufacturers can reside, as we have seen, at the leading edges of target markets, and also in advanced analog markets. The innovations that some of these develop are certainly disruptive from the viewpoint of some manufacturers—”” [Eric von Hippel](https://sms4smile.com/quotes/author/eric-von-hippel/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Lead users, broader than customers, generate innovations that can be disruptive to manufacturers. **In simple terms:** Lead users create disruptive innovations. Key Takeaway Identify and collaborate with lead users. Themes innovation lead users market disruption Mood analytical strategic Type business insight When to use this quote - Product development - market research - R&D strategy - entrepreneurship Key Concepts User innovation lead user theory disruptive tech Questions to Reflect On - How to align lead user incentives? - When does disruption become harmful? A Different Perspective Lead users may have conflicting goals with firms. ★ ★ ★ ★ ★ No ratings yet [Investing](https://sms4smile.com/quotes/about/investing/) [Leadership](https://sms4smile.com/quotes/about/leadership/) [Target market](https://sms4smile.com/quotes/about/target-market/) ## Related quotes > [“Research provides a firm grounding for these empirical findings. 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If you lack the confidence, you very well may feel pushy in selling…](https://sms4smile.com/quotes/lisa-mininni/what-is-happening-on-the-inside-is-reflected-on-the-outside-if-you/) [Lisa Mininni](https://sms4smile.com/quotes/author/lisa-mininni/) ## More by Eric von Hippel > [“The user-centered innovation process just illustrated is in sharp contrast to the traditional model, in which products and services are developed by manufacturers in…](https://sms4smile.com/quotes/eric-von-hippel/the-user-centered-innovation-process-just-illustrated-is-in-sharp/) [Eric von Hippel](https://sms4smile.com/quotes/author/eric-von-hippel/) > [“1978 Jurgen Honscheid came over from West Germany for the first Hawaiian World Cup and discovered jumping, which was new to him, although Mike…](https://sms4smile.com/quotes/eric-von-hippel/1978-jurgen-honscheid-came-over-from-west-germany-for-the-first/) [Eric von Hippel](https://sms4smile.com/quotes/author/eric-von-hippel/) > [“In this book I explain in detail how the emerging process of user-centric, democratized innovation works. I also explain how innovation by users provides…](https://sms4smile.com/quotes/eric-von-hippel/in-this-book-i-explain-in-detail-how-the-emerging-process-of-user/) [Eric von Hippel](https://sms4smile.com/quotes/author/eric-von-hippel/) > [“structure of the social division of labor. Many firms and industries must make fundamental changes to long-held business models in order to adapt. Further,…](https://sms4smile.com/quotes/eric-von-hippel/structure-of-the-social-division-of-labor-many-firms-and-industries/) [Eric von Hippel](https://sms4smile.com/quotes/author/eric-von-hippel/) > [“the ongoing shift of product-development activities from manufacturers to users is painful and difficult for many manufacturers.”](https://sms4smile.com/quotes/eric-von-hippel/the-ongoing-shift-of-product-development-activities-from/) [Eric von Hippel](https://sms4smile.com/quotes/author/eric-von-hippel/) > [“Dedicated to all who are building the information commons.”](https://sms4smile.com/quotes/eric-von-hippel/dedicated-to-all-who-are-building-the-information-commons/) [Eric von Hippel](https://sms4smile.com/quotes/author/eric-von-hippel/) > [“increase the ease with which innovators can build larger systems from interlinkable modules created by community participants. 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As a result, it is…](https://sms4smile.com/quotes/eric-von-hippel/innovation-by-users-tends-to-be-widely-distributed-rather-than/) [Eric von Hippel](https://sms4smile.com/quotes/author/eric-von-hippel/) > [“created specifically to separate the problem-solving tasks requiring access to a manufacturer's sticky solution information from those requiring access to users' sticky need information.…](https://sms4smile.com/quotes/eric-von-hippel/created-specifically-to-separate-the-problem-solving-tasks-requiring/) [Eric von Hippel](https://sms4smile.com/quotes/author/eric-von-hippel/) > [“universities and the Library of Congress, with support provided by grants from the federal government (Tedd 1994). 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The result is that…](https://sms4smile.com/quotes/eric-von-hippel/copyright-owners-can-prevent-others-from-building-new-works-on/) [Eric von Hippel](https://sms4smile.com/quotes/author/eric-von-hippel/) > [“In 1978 Jurgen Honscheid came over from West Germany for the first Hawaiian World Cup and discovered jumping, which was new to him, although…](https://sms4smile.com/quotes/eric-von-hippel/in-1978-jurgen-honscheid-came-over-from-west-germany-for-the-first/) [Eric von Hippel](https://sms4smile.com/quotes/author/eric-von-hippel/) > [“and services-both firms and individual consumers-are increasingly able to innovate for themselves. 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