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—Innovations' Origins: When, By Whom, and How Are Radical Innovations Developed?

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  • Peter N. Golder

    (Stern School of Business, New York University, New York, New York 10012)

  • Rachel Shacham

    (Stern School of Business, New York University, New York, New York 10012)

  • Debanjan Mitra

    (Warrington College of Business, University of Florida, Gainesville, Florida 32611)

Abstract

Innovation research tends to consider only the post-commercialization period or examine a few innovations through case studies. In this study, we examine 29 radical innovations from initial concept to mass-market commercialization. We find that these innovations were developed over an average of at least 50 years and divide this long development period into four distinct stages—conceptualization, gestation, early incubation, and late incubation. We find that the duration of a stage is longer when different firms lead product development at the beginning and end of the stage. These changes in product development leaders happen frequently, e.g., 76% of firms that were first to commercialize an innovation failed to launch it in the broader market. We also find that the time-to-takeoff for a product category is significantly related to the duration of the preceding late incubation stage. In addition, we find four different ways in which radical innovations borrow from prior seemingly unrelated innovations. We report many other findings on when (duration times), by whom (product development leaders), and how (technology borrowing) radical innovations are developed.

Suggested Citation

  • Peter N. Golder & Rachel Shacham & Debanjan Mitra, 2009. "—Innovations' Origins: When, By Whom, and How Are Radical Innovations Developed?," Marketing Science, INFORMS, vol. 28(1), pages 166-179, 01-02.
    • Handle: RePEc:inm:ormksc:v:28:y:2009:i:1:p:166-179
    DOI: 10.1287/mksc.1080.0384
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    6. Kandampully, Jay & Bilgihan, Anil & Bujisic, Milos & Kaplan, Andreas & Jarvis, Cheryl Burke & Shukla, Yupal, 2021. "Service transformation: How can it be achieved?," Journal of Business Research, Elsevier, vol. 136(C), pages 219-228.
    7. Yang, Kuo-Pin & Chou, Christine & Chiu, Yu-Jen, 2014. "How unlearning affects radical innovation: The dynamics of social capital and slack resources," Technological Forecasting and Social Change, Elsevier, vol. 87(C), pages 152-163.
    8. Mahka Moeen & Rajshree Agarwal, 2017. "Incubation of an industry: Heterogeneous knowledge bases and modes of value capture," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 566-587, March.
    9. Mahka Moeen & Will Mitchell, 2020. "How do pre‐entrants to the industry incubation stage choose between alliances and acquisitions for technical capabilities and specialized complementary assets?," Strategic Management Journal, Wiley Blackwell, vol. 41(8), pages 1450-1489, August.
    10. Francesco Paolo Appio & Antonella Martini & Silvia Massa & Stefania Testa, 2016. "Unveiling the intellectual origins of Social Media-based innovation: insights from a bibliometric approach," Scientometrics, Springer;Akadémiai Kiadó, vol. 108(1), pages 355-388, July.
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