Honestly, users never know what/how things get developed.

Best is for devs to create things and users/market chose which projects to use. That sends market signals to devs to then chose which nips/features are in real demand.

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I'm not sure if this is true. Allegedly Steve Jobs said something along the lines of:

'Some people say, "Give the customers what they want." But that's not my approach. Our job is to figure out what they're going to want before they do. I think Henry Ford once said, "If I'd asked customers what they wanted, they would have told me, 'A faster horse!'" People don't know what they want until you show it to them. That's why I never rely on market research. Our task is to read things that are not yet on the page.'

“You’ve got to start with the customer experience and work back towards the technology.” -Steve Jobs

This quote suggests that while it's important to innovate and create new technology, the ultimate goal should be to provide a positive experience for users. In other words, companies should start by understanding what users need and want, and then work to create technology that meets those needs.

This approach may not always involve simply giving users exactly what they say they want, but rather understanding the underlying problems they're trying to solve and creating solutions that address those problems in new and innovative ways.

The cool thing about NIPS is a user can propose one and get what they want AND devs can also propose one to address underlying problems in innovative ways.

These are not mutually exclusive.