Open Innovation 2.0: Is Co-Creation the Ultimate Challenge?

Web 2.0 has considerably increased the possibilities of user involvement in the production process and, thereby, has given rise to new forms of co-creation (Open Innovation with customers). Because the roles of consumers, now 'prosumers,' have radically changed, specific challenges have emerged. The aim of this article is to provide possible routes to address such challenges. To do so, an input-output typology of co-creation is created. This typology is then used to discuss the main challenges of co-creation: incentives, risks and costs, IPRs.