Industries evolve in patterned change: many factors cause such evolution, technology being one of them. Firm entries in an industry will always follow a bell curve o. Industries begin to overlap as new technologies are introduced, leading to multiple bell curves. Innovation is embodied in the outputs (products) of an organization: occurs in the early period of an industry life cycle to facilitate differentiation. Innovation takes place in the way an organization conducts its business: occurs in late period of an industry life cycle to facilitate cost leader and increased efficiency. Refers to the degree to which the tech is a departure from existing practices: example: introduction of iphone (radical) vs. move from iphone 6 to 6s (incremental) Radical innovation: tech is highly different, significant risk, easy to recognize a change once it has occurred. Incremental innovation: minor change to existing practices. Innovation that builds on a firm"s existing knowledge and skills: benefits incumbent firms with complementary assets.