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.
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