Innovation of crowdfunding Essay Example | Topics and Well Written Essays - 4000 words

Innovation of crowdfunding - Essay characterCrowdfunding, as a process, has a series of unique features. For this reason, the specific process is considered to meet the requirements of innovation. However, a guardedly review of the characteristics of this process reveals similarities to an existing framework/ idea the crowdsourcing, a term denoting the use of crowd to bear ideas, feedback and solutions in regard to corporate activities (Danmayr, 2013, p.4). In addition, before crowdfunding creative projects were funded using traditional funding methods, such as self- support or bank-financing (Metzler, 2011, p.4). In this context it could be supported that crowdfunding is a process that has replaced traditional financing schemes, especially in regard to projects of the creative sector.As of the innovative character of crowdfunding reference should be do to the following fact crowdfunding seems to meet all the criteria used for defining a process as innovative. However, caper co uld possibly appear when trying to categorise crowdfunding as innovation. Initially, crowdfunding could be possibly considered to be a root innovation, as this type of innovation is explained further in the next sections. A series of studies in the literary productions seem to promote this view the studies of Castaldo (2013) and Deffains-Crapsky and Sudolska (2014), as analyzed below, are examples of this approach. However, most academic studies lead to some other view crowdfunding is rather an additive innovation, i.e. an innovation based on existing technology. This study refers to crowdfunding as an incremental innovation. Relevant literature is presented in the Literature Review section for supporting the specific approach.In crowdfunding triad types of participants can be identified the creators, the funders and the online platform (Danmayr, 2013, p.18). Crowdfunding involves in two, key,