Internet-of-things as a Playground for Participatory Innovation and Business Potentials in Complex Modern Economies

The Internet and the Web are evolving embracing semantics and pragmatics of data, information and knowledge. Part of this evolution is Internet-of-Things (IoT) in various forms. This includes design principles based on the original idea of the Internet and the Web: free of charge, bottom-up approach, self-organizing and co-creation. In this paper we will unfold how it is possible to
use the IoT as a playground in a digital and social development, where the traditional simple dichotomy between state and market description of economies is challenged by the complexity of new institutional economies, transaction cost theories, commons based peer-production and governance of common pool resources. By using these new economies we envision that Participatory Innovation and Business Opportunity should take place in polycentric units of relations, where production, exchange and consumption of IoT resources are ‘designed’ based on selforganizing principles. We identify and combine four approaches to each of these three relations. Together they provide a diversity of 64 potentials for participatory innovation and business potentials in producing,
exchanging and consuming IoT resources.