Short answer
Prioritize building or leveraging a robust ecosystem alongside technological development to ensure successful and rapid market adoption.
- Field
- Innovation & Markets
- Source
- Strategic Management Journal (2015)
- Method
- Framework development and empirical analysis
- Evidence
- Strong effect
The speed at which a new technology replaces an existing one is heavily influenced by the maturity and adaptability of its supporting ecosystem, not just the inherent superiority of the technology itself. This innovation & markets research insight is drawn from a 2015 study published in Strategic Management Journal. Using Framework development and empirical analysis, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Prioritize building or leveraging a robust ecosystem alongside technological development to ensure successful and rapid market adoption.
Innovation Ecosystems Dictate Technology Substitution Speed
The speed at which a new technology replaces an existing one is heavily influenced by the maturity and adaptability of its supporting ecosystem, not just the inherent superiority of the technology itself.
Strategic Management Journal · 2015
Key Findings
- 01Technology substitution is not solely driven by the focal technologies but by the interplay between the technology and its surrounding ecosystem.
- 02The 'ecosystem emergence challenge' for new technologies and the 'ecosystem extension opportunity' for old technologies are key determinants of substitution pace.
- 03Four distinct regimes of technology transition can be identified based on these ecosystem factors.
Application
Design takeaway
Prioritize building or leveraging a robust ecosystem alongside technological development to ensure successful and rapid market adoption.
How to apply
Before launching a new product, map out its entire ecosystem, including suppliers, complementary products, and customer support infrastructure. Identify potential bottlenecks and develop strategies to address them.
Project actions
- 01When researching a new product idea, think about who else needs to be involved for it to work well (e.g., app developers for a new phone, charging stations for electric cars).
- 02Consider if existing technologies have 'friends' that help them stay relevant, or if they are isolated and vulnerable.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a novel framework for understanding technology transitions beyond just technological superiority.
- +Empirically validated with real-world industry data.
Limitations
It can be difficult to precisely measure the 'strength' or 'maturity' of an ecosystem. The historical data used might not fully capture all nuances of ecosystem development.
Reliability & validity
The study's validity is supported by empirical evidence from a specific industry. Reliability would depend on the consistency of ecosystem factors over time and across similar transitions.
Think critically
How might a designer proactively shape or influence the ecosystem to accelerate the adoption of their innovative product?
Design Principles
"Technological innovation is realized through its ecosystem."
Understanding the role of innovation ecosystems is crucial for predicting market adoption rates and for developing effective strategies for introducing new technologies or defending incumbent ones. Designers and strategists must consider the broader network of suppliers, complementors, and customers, as these external factors can significantly accelerate or impede technological progress.
What This Means for Your Design
New inventions don't succeed just because they are better; they succeed if they can get help from other companies and industries around them. If the 'helpers' aren't ready, the new invention will be slow to catch on.
How to use in your project
- 1.Reference this study when discussing the market viability and adoption challenges of your design, particularly if it relies on or impacts an existing ecosystem.
Add to My Project
Quick Cite
Paragraph starter
The successful adoption and substitution rate of a new technology are significantly influenced by its surrounding innovation ecosystem. As demonstrated by Adner and Kapoor (2015), the ease with which a new technology can emerge within its ecosystem (ecosystem emergence challenge) and the potential for incumbent technologies to adapt their ecosystems (ecosystem extension opportunity) are critical determinants of the pace of substitution. Therefore, any design project aiming for market disruption must consider not only the product's features but also the readiness and adaptability of its supporting ecosystem.
Source
Strategic Management Journal
Innovation ecosystems and the pace of substitution: Re‐examining technology S‐curves
journal · 2015
View sourceQuestions About This Research
- What does the research say about innovation ecosystems dictate technology substitution speed?
- Prioritize building or leveraging a robust ecosystem alongside technological development to ensure successful and rapid market adoption. Evidence: Strategic Management Journal (2015).
- Why does "Innovation Ecosystems Dictate Technology Substitution Speed" matter for design?
- Understanding the role of innovation ecosystems is crucial for predicting market adoption rates and for developing effective strategies for introducing new technologies or defending incumbent ones. Designers and strategists must consider the broader network of suppliers, complementors, and customers, as these external factors can significantly accelerate or impede technological progress.
- How can designers apply this research?
- Prioritize building or leveraging a robust ecosystem alongside technological development to ensure successful and rapid market adoption.
- What were the main findings?
- Technology substitution is not solely driven by the focal technologies but by the interplay between the technology and its surrounding ecosystem.. The 'ecosystem emergence challenge' for new technologies and the 'ecosystem extension opportunity' for old technologies are key determinants of substitution pace.. Four distinct regimes of technology transition can be identified based on these ecosystem factors.
- What research method was used?
- Framework development and empirical analysis.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2015 journal from Strategic Management Journal.
- What should I do differently in my next project?
- Before launching a new product, map out its entire ecosystem, including suppliers, complementary products, and customer support infrastructure. Identify potential bottlenecks and develop strategies to address them.
- What are the limitations?
- The framework's applicability may vary across different industries and types of innovation. The historical data might not perfectly predict future trends.