The Impact of User-generated Content on Product Innovation

➢Conclusion

• Installed base and release activity contribute to UGC contribution
– Installed base dampens Reports, boosts Requests, has no impact on
Revisions
– Recent release activity boost Reports and Requests
• Impact varies by type of UGC
– Reports boost release activity, but dampen market response
– Requests dampen release activity and market response
– Revisions have no impact on release activity, but boost market
response
• Net effect of UGC on market response may be negative or negligible
– Popular projects tend to get more UGC
– UGC may contribute to more frequent releases, but it may be seen as
a signal of poor quality

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