IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v27y2018i4p328-342.html
   My bibliography  Save this article

Absorptive capacity of demand in sports innovation

Author

Listed:
  • Isabel Almudi
  • Francisco Fatas-Villafranca
  • Jason Potts
  • Stuart Thomas

Abstract

We propose a stylized and tractable neo-Schumpeterian model of sectorial transformations in which demand-side knowledge constraints inhibit innovation diffusion and industrial change, causing structural instability. Evolutionary competition in the model implies that innovation can overshoot the absorptive capacity of demand, leading to a slowdown in sectorial dynamism and even to structural collapse. Closed-form analytical results prove the existence of a unique stationary state in the dynamic model that is (globally) asymptotically stable. We show how the dynamic paths and the stationary rest-point depend on the trade-off between innovation and demand absorptive capacity parameters. To illustrate the plausibility and relevance of our results, we examine the Australian windsurfing industry in which diminished demand absorptive capacity (in the terms of the model) was a factor underlying sectoral collapse. We discuss how development of absorptive capacity of demand presents a collective action problem for an industry sector, and the role of demand-side factors as constraints in industry and innovation policy.

Suggested Citation

  • Isabel Almudi & Francisco Fatas-Villafranca & Jason Potts & Stuart Thomas, 2018. "Absorptive capacity of demand in sports innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 27(4), pages 328-342, May.
    • Handle: RePEc:taf:ecinnt:v:27:y:2018:i:4:p:328-342
    DOI: 10.1080/10438599.2017.1356045
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10438599.2017.1356045
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10438599.2017.1356045?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andersen, Allan Dahl & Markard, Jochen, 2020. "Multi-technology interaction in socio-technical transitions: How recent dynamics in HVDC technology can inform transition theories," Technological Forecasting and Social Change, Elsevier, vol. 151(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ecinnt:v:27:y:2018:i:4:p:328-342. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.