Destructive technologies as driving forces of new technological cycles for industrial and corporate change

Abstract. This study suggests a new concept of technology that is a main element of the system of technological change in society: killer or disruptive technology is a based on new products and/or processes that destroys the usage of established products/processes sold and used. The behavior of killer technologies is operationalized here with a simple model that shows how new technologies substitute old ones. technologies. Several examples illustrate this vital concept for economics of technology that can explain the drivers of technological cycles and technological change in society.  Empirical evidence of this theoretical framework is based on data of some example technologies. Theoretical framework and empirical evidence hint at general properties of the behavior of killer technologies: a) killer technology is always associated with some comparable established technology in markets; b) killer technology has a disproportionate growth in relation to victim technology; c) in the long run, killer technology has a series of technological advances of its own resulting from various major and minor innovations to pave the way for the dominance over other established technologies in markets; d) learning via diffusion and diffusion by learning are driving forces  underlying the development and adoption of killer technology in turbulent markets. The proposed theoretical framework can explain industrial, economic and social change and support strategies of management of technology for competitive advantage of firms and nations.Keywords. Killer technology, Diffusion of innovation; Radical innovation, Destructive creation, Evolution of technology, Development of technology, Technological cycles, Dynamics of technological innovation, Technology change, Management of technology, Allometric process, Learning processes.JEL. O30, O32, O33, B50

The diffusion of IP telephony and vendors' commercialisation strategies

This is a post-peer-review, pre-copyedit version of an article published in the Journal of Information Technology. The definitive publisher-authenticated version is available at the link below.The Internet telephony (IP telephony) has been presented as a technology that can replace existing fixed-line services and disrupt the telecommunications industry by offering new low-priced services. This study investigates the diffusion of IP telephony in Denmark by focusing on vendors’ commercialisation strategies. The theory of disruptive innovation is introduced to investigate vendors’ perceptions about IP telephony and explore their strategies that affect the diffusion process in the residential market. The analysis is based on interview data collected from the key market players. The study's findings suggest that IP telephony is treated as a sustaining innovation that goes beyond the typical voice transmission and enables provision of advanced services such as video telephony

Creative destruction or mere niche creation? Innovation policy mixes for sustainability transitions

Recently, there has been an increasing interest in policy mixes in innovation studies. While it has long been acknowledged that the stimulation of innovation and technological change involves different types of policy instruments, how such instruments form policy mixes has only recently become of interest. We argue that an area in which policy mixes are particularly important is the field of sustainability transitions. Transitions imply not only the development of disruptive innovations but also of policies aiming for wider change in socio-technical systems. We propose that ideally policy mixes for transitions include elements of ‘creative destruction’, involving both policies aiming for the ‘creation’ of new and for ‘destabilising’ the old. We develop a novel analytical framework including the two policy mix dimensions (‘creation’ and ‘destruction’) by broadening the technological innovation system functions approach, and specifically by expanding the concept of ‘motors of innovation’ to ‘motors of creative destruction’. We test this framework by analysing ‘low energy’ policy mixes in Finland and the UK. We find that both countries have diverse policy mixes to support energy efficiency and reduce energy demand with instruments to cover all functions on the creation side. Despite the demonstrated need for such policies, unsurprisingly, destabilising functions are addressed by fewer policies, but there are empirical examples of such policies in both countries. The concept of ‘motors of creative destruction’ is introduced to expand innovation and technology policy debates to go beyond policy mixes consisting of technology push and demand pull instruments, and to consider a wider range of policy instruments combined in a suitable mix which may contribute to sustainability transitions

Understanding innovators' experiences of barriers and facilitators in implementation and diffusion of healthcare service innovations: A qualitative study

This article is made available through the Brunel Open Access Publishing Fund - Copyright @ 2011 Barnett et al.Background: Healthcare service innovations are considered to play a pivotal role in improving organisational efficiency and responding effectively to healthcare needs. Nevertheless, healthcare organisations encounter major difficulties in sustaining and diffusing innovations, especially those which concern the organisation and delivery of healthcare services. The purpose of the present study was to explore how healthcare innovators of process-based initiatives perceived and made sense of factors that either facilitated or obstructed the innovation implementation and diffusion. Methods: A qualitative study was designed. Fifteen primary and secondary healthcare organisations in the UK, which had received health service awards for successfully generating and implementing service innovations, were studied. In-depth, semi structured interviews were conducted with the organisational representatives who conceived and led the development process. The data were recorded, transcribed and thematically analysed. Results: Four main themes were identified in the analysis of the data: the role of evidence, the function of inter-organisational partnerships, the influence of human-based resources, and the impact of contextual factors. "Hard" evidence operated as a proof of effectiveness, a means of dissemination and a pre-requisite for the initiation of innovation. Inter-organisational partnerships and people-based resources, such as champions, were considered an integral part of the process of developing, establishing and diffusing the innovations. Finally, contextual influences, both intra-organisational and extra-organisational were seen as critical in either impeding or facilitating innovators' efforts. Conclusions: A range of factors of different combinations and co-occurrence were pointed out by the innovators as they were reflecting on their experiences of implementing, stabilising and diffusing novel service initiatives. Even though the innovations studied were of various contents and originated from diverse organisational contexts, innovators' accounts converged to the significant role of the evidential base of success, the inter-personal and inter-organisational networks, and the inner and outer context. The innovators, operating themselves as important champions and being often willing to lead constructive efforts of implementation to different contexts, can contribute to the promulgation and spread of the novelties significantly.This research was supported financially by the Multidisciplinary Assessment of Technology Centre for Healthcare (MATCH)

Nanotechnology and business opportunities: scenarios as awareness instrument

For a few years now, nanotechnology has been recognised as a promising new growth innovator. This leads to a shift from the exploration of nanotechnology knowledge towards a phase of exploitation. The coming years this commercialisation of nanotechnology will be extended. Nanotechnology is a disruptive technology phenomenon, which leads to more difficulties in overseeing business opportunities. Additionally, the fact that high-tech small firms, especially those dealing with nanotechnology, are highly interested in developments in science and technology, begs the question how to stimulate the awareness for (new) business opportunities in nanotechnology within these firms. A promising strategy to stimulate learning and awareness of business opportunities in nanotechnology is the use of scenarios. These projections focused on uncertainty stretch the mental model of entrepreneurs and/or managers and have the ability to activate learning processes. This paper presents the (theoretical) fundaments of scenario usage in relation to the recognition of business opportunities in nanotechnology.

Late Innovation Strategies in Asian Electronics Industries: A Conceptual Framework and Illustrative Evidence

This paper was published in Oxford Development Studies special issue in honor of the late Professor Linsu Kim. The paper reviews evidence on the evolution of electronics design in Asia's leading electronics exporting countries, to establish what capabilities have been developed, and to shed light on the forces that are driving "late innovation" strategies. It also reviews intellectual sources that can be used to theoretically ground these hypotheses. Using a well-known taxonomy of innovation that distinguishes incremental, modular, architectural and radical innovations, and the concept of "disruptive technologies", I argue that Asian firms may have realistic chances to engage in incremental innovations as well as in architectural innovations. However, to sustain "late innovation" strategies over a longer period, "complex system integration" capabilities are necessary to provide the missing link.

Environmental innovation and industrial dynamics: the contributions of evolutionary economics

The purpose of this article is to discuss the contributions of the evolutionary theory of innovation on the micro and meso dynamics of environmental innovations. We argue that the evolutionary literature on innovation, and more particularly on technological regimes, provides a relevant framework in order to analyse the various determinants of environmental innovations and the double externality problem in an industrial dynamics context. The article starts with an overview of the empirical literature on environmental innovations with a focus on their determinants and specificities. In section 3, we discuss the contributions of the evolutionary literature on technological regimes and argue that it can provide a relevant framework for a sectoral approach of environmental innovations. In section 4, we concentrate on the role of demand side dynamics and highlight the implications of technological competition models on the role of demand conditions in the diffusion of environmental technologies. Finally, section 5 is devoted to the implications of the evolutionary theory of innovation on the question of the transition towards more sustainable technological systems.Environmental innovations, industrial dynamics, evolutionary theory, technological regimes