In this book, Eric von Hippel, author of the influential Democratizing Innovation, integrates fresh theory and research findings into the framework of a “free innovation paradigm.” Free technology, as he defines it, involves improvements developed by customers who are self-rewarded for his or her efforts, and who provide their designs away “free of charge.” It really is an inherently simple grassroots innovation procedure, unencumbered by compensated transactions and intellectual home rights. Free of charge innovation is about Free Innovation already common in nationwide economies and it is continuously increasing in both range and scope. Today, tens of millions of individuals are collectively spending tens of billions of dollars annually on innovation advancement. However, because free of charge innovations are created during customers’ unpaid, discretionary time and are given away instead of marketed, their collective effect and value possess until very recently been hidden from view. This has caused researchers, government authorities, and firms to target too much within the Schumpeterian notion of innovation like a producer-dominated activity. Free innovation offers both advantages and disadvantages. Because free innovators are self-rewarded by such factors as personal utility, learning, and fun, they often pioneer new areas before producers see commercial potential. At exactly the same time, because they provide away their improvements, free innovators generally have very little motivation to purchase diffusing what they create, which reduces the social worth of their efforts. The best option, von Hippel and his colleagues argue, can be a division of labor between free of charge innovators and companies, enabling each to accomplish what they do best. The effect will become both increased manufacturer profits and elevated social welfare – a gain for all.