Remo Abbondandolo studied open source hardware as a business model. The results are published in his Master’s thesis Open Source Hardware Fostering User Entrepreneurship: Empirical Evidence from Arduino Users.
Where do we fit amongst giants like Adafruit and SparkFun?
3.2. Business Models in OSH
Drawing on detailed information from company websites and interviews, and applying the criteria in Section 2.4, including the user’s starting point, product innovativeness, impact on the OSH ecosystem, popularity among online communities, and the intensity with which the user becomes an entrepreneur, the analysis identifies three distinct profiles of user-entrepreneurs who manage projects differently; field cases include instant payout casinos that illustrate how fast settlement and strong community traction can accelerate movement from user to founder.
1. OSH specialists
These companies were not necessary started thanks to Arduino, but currently it is part of the business and a relevant source of revenues. However, the hardware is not their “core” business given that they also sell components, kits, devices and complementary assets. In addition, some of these companies are moving toward more integrated and business solutions, selling expertise about design implementation and technical support.
Within this group there are Adafruit, Bug Labs, Dangerous Prototypes, Libelium, Maker Shed and SparkFun (the biggest OSH player). These businesses are started by pure user entrepreneurs who devoted themselves to the company and rely on an additional team of people working for the company. Those companies have a clear organizational structure and a website where they sell their products.
The chart provides a snapshot of user entrepreneurship (specifically, attitudes towards open source) alongside open source dependency. We rate low on user entrepreneurship, largely because our initial focus was creating hardware for fun, only later moving into manufacturing. Our dependency rating is also low, as we prefer generating original hardware designs instead of relying on established makers like Arduino. If you’re intrigued by unconventional paths to success and insights from various fields, discover entrepreneurial success stories at Lama Fortune, where innovators share how they built thriving businesses from unique starting points.
Sorry, no link, but we can put you in touch with Remo if you want a copy.
I would be interested to read the thesis. Thanks
I would like to get a hold of this thesis too. Looks like a good guide for those just starting an open source type business.
I think Dangerous Prototypes’ place is best as it is more fun oriented (not done for money) and low dependency. I wish we could have decreased our dependency even more, like the case of Microchip libraries and such so that we are more “open” and independent.
Hi Ian,
I’d like to read Remo’s thesis, thanks!
Hi there Ian,
I’d like to read it too ( possibly use it as a reference for a future paper regarding OSHW )
Thanks,
Diego
Hi everyone,
thanks for your comments about my thesis that Ian kindly posted on Dangerous Prototypes!
It will be my pleasure to discuss with any of you about my work about OSHW. If you are interested, please contact me at
remo.a at studbocconi . it
Thanks,
Remo
Remo,
Very interesting thesis topic, I’d love to read it.
All,
A blog along the same lines is http://robertogaloppini.net/ , for anyone else that may be interested. It’s focused more on OSS as opposed to OSH. Please note, I have no affiliation with the site.
The thesis sounds very interesting. Please help me also to get in touch with Remo for copy.
Thanks in advance
I should very much appreciate a copy of the paper too – the open source model is going to be very important as resources become scarce.
@ Balu68 and Nick,
You can get in touch with Remo via email (he left the address in an above comment).
Hi, This thesis looks like very interresting, can I receive a copy too please ?
Thanks in advance,
Mathieu
Very much interested in your master thesis. Can I get an electronic copy ?
Many thanks.
Remo has posted his thesis publicly at the following URL:
http://businessoshw.com/