Evolutional dynamics of product innovation: the case of consumer electronics

This report addresses the question of how product innovation occurs. In other words, where does it originate and what induces it? The aim of the authors has been to expand upon and systematize the research presented in our previous study (Orihata, M., Watanabe, C., Technovation, in press) through the application of a new, evolutionary approach. We have chosen to focus on the consumer electronics industry, taking as our case studies three producers of revolutionary products such as Sony's video camera, Sharp's PDA (Personal Digital Assistance) and Toshiba's notebook personal computer. These examples have the virtue of encompassing both visual and text-based data transmission devices, as well as hand-script input and keyboard input methods. The main point we shall consider here is the stage that takes place before product innovation occurs, the process that we have termed "institutional inducement". which forms part of the feedback loop between the market, or environment, and the producer. Because this process is "a flow of information and knowledge" we have structured it using a semiotic methodology, which has led us to conclude that product innovation is induced by the creation of new product concepts. In accordance with this, we propose that the evolutionary, dynamic pattern of product innovation is linked to the institutional trajectory. (C) 2000 Elsevier Science Ltd. All rights reserved.