Disruptive technologies: innovators' problem and entrepreneurs' opportunity

This paper examines the statement made by Christensen (1997) that disruptive technologies are introduced into markets with innovations that cost more and perform more poorly than existing products. This is likely to be an industry specific observation, observed in part because of an imprecise definition of disruptive innovation. Empirical evidence suggests that small independent firms are more successful at the innovation process because they are unaffiliated with an existing product line, do not have an existing customer base, and so search for applications where their technology can provide immediate profitability. This "fresh start" advantage means that the innovator's dilemma provides major opportunities for small entrepreneurial firms.