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Disruptive innovation and technological catch-up in the NLP sector: The moderating role of the technology cycle

Author

Listed:
  • Junguo Shi

    (Jiangsu University, School of Finance and Economics)

  • Wenyi Yan

    (Jiangsu University, School of Finance and Economics)

  • Kun Jiang

    (Tianjin Economic-Technological Area Administrative Commission)

  • Bert Sadowski

    (Technische Universiteit Eindhoven, School of Innovation Sciences and Industrial Engineering)

Abstract

Drawing on evolutionary economics theory and sectoral innovation systems frameworks, this study examines how technological catch-up dynamics are shaped by the interaction between disruptive innovation and the characteristics of the technology cycle. Using patent data from 2003 to 2023 from natural language processing(NLP) sector, we introduce the disruptive innovation index through a dynamic network measure of technological change. Our negative binomial regression models reveal that disruptive innovation significantly accelerates technological catch-up and that a shorter technology cycle enhances this catching-up effects of disruptive innovation.These findings contribute to the literature on sectoral innovation dynamics by providing micro-level evidence of how firms leverage disruptive innovation to reposition themselves in rapidly evolving technological landscapes.

Suggested Citation

  • Junguo Shi & Wenyi Yan & Kun Jiang & Bert Sadowski, 2026. "Disruptive innovation and technological catch-up in the NLP sector: The moderating role of the technology cycle," Journal of Evolutionary Economics, Springer, vol. 36(1), pages 1-24, April.
  • Handle: RePEc:spr:joevec:v:36:y:2026:i:1:d:10.1007_s00191-025-00930-9
    DOI: 10.1007/s00191-025-00930-9
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • 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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