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Industry structure and disruptive innovations: the satellite industry

Author

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  • Victor dos Santos Paulino
  • Gaël Le Hir

Abstract

In this paper we investigate whether technologies recently introduced on the market can be a threat for existing firms. We use the theory of disruptive innovation and we propose the concept of potential disruptive innovation to assess this threat. Our empirical framework is the satellite industry. We show that the new types of satellites arriving in the industry are potential disruptive innovations. These new technologies represent a low potential threat for existing producers because new types of satellites are an imperfect substitute for existing satellites. In this study, we show that several types of potential disruptive innovations may exist at the same time. By detailing the characteristics of three types of potential disruptive innovations, we attempt to reduce the confusion about what disruptive innovation actually is. This paper also provides some insights for managers to help them assess the threat of new technologies that are potential disruptive innovations. JEL Codes: L1, L6, O33, M

Suggested Citation

  • Victor dos Santos Paulino & Gaël Le Hir, 2016. "Industry structure and disruptive innovations: the satellite industry," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 37-60.
    • Handle: RePEc:cai:jiedbu:jie_020_0037
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    Citations

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    Cited by:

    1. Julien GUYOT & Sébastien ROUILLON, 2021. "Designing satellites to cope with orbital debris," Bordeaux Economics Working Papers 2021-16, Bordeaux School of Economics (BSE).
    2. Pierre Barbaroux & Victor Santos Paulino, 2022. "Why do motives matter? A demand-based view of the dynamics of a complex products and systems (CoPS) industry," Journal of Evolutionary Economics, Springer, vol. 32(4), pages 1175-1204, September.
    3. Sébastien Rouillon, 2020. "A Physico-Economic Model of Low Earth Orbit Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(4), pages 695-723, December.
    4. Yuexia Han & Zhuang Chen & Yuxin Hu & Liyan Zhang & Huishan Fu & Renyong Zhang & Wei Zhang, 2023. "A PIE analysis of China’s commercial space development," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.

    More about this item

    Keywords

    potential disruptive innovations; innovator’s dilemma; substitute; threat; industry structure; satellite industry;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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