User innovation in the digital economy

The paper reviews the current state of user innovation in the business and household sectors and considers the impact of the digital economy on user innovation. A general definition of innovation, applicable in all sectors of the economy, is introduced to expand the domain of user innovation to all economic sectors, not just the business sector and households. This raises questions about innovation policy, especially in a digital economy, and how policy affects innovation in households. The outcomes of this study include the implications for skills needed to support user innovation in the different economic sectors of the digital economy and the relevance of user innovation to policy objectives.