M B A 8450 Chapter Notes - Chapter 4: Dominant Design, Complementary Good, Innovation Management
Document Summary
Anderson and tushman pointed out, the technology cycle almost invariably exhibits a stage in which the industry selected a dominant design. The more a technology is adopted the more valuable it becomes. Complex technologies the more they are used the more they are improved. Once a technology is adopted then the revenue can be used to improved this technology. With time greater knowledge is accrue which enables improvement in the technology itself and its applications. As technology is more widely adopted, complementary assets are often more specialized to operate with the technology. As a technology is adopted, it generates sales revenues that can be reinvested in further developing and refining the technology. Learning curve: as individuals and producers repeat a process, they learn, to make it more efficient, often producing new technological solutions that may enable them to reduce inputs costs or wastes rates.