By Marian Beise
The publication solutions 3 questions. First: what's a lead industry? moment: what constitutes a lead marketplace? and 3rd: how can businesses harness lead markets to generate international options? contemplating the overseas, cross-border diffusion of options you may notice specific technological layout similar to the facsimile desktop, the non-public laptop or the cellular cell phone is frequently followed via one state or area ("lead market") a lot prior to via different international locations. The examine indicates a theoretical reason for the phenomena of lead markets and collects empirical facts from an in depth case research of the mobile cellular cellphone undefined. a brand new innovation improvement and industry access proposal is presented.
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Additional resources for Lead Markets: Country-Specific Success Factors of the Global Diffusion of Innovations
In his seminal article, Levitt (1983) suggests that technologies such as telecommunications, television and transport also lead to the convergence of demand preferences and in particular of demand for innovations. Technology equalises the availability of information on innovations. Through worldwide communication, transport and travel, "almost everyone everywhere wants all the things they have heard about, seen, or experienced via the new technologies" (Levitt 1983, p. 92). 2). Once an innovation has been adopted somewhere it is rapidly known and made available elsewhere.
Products are not exclusively demanded by domestic users. Heterogeneous demand within countries enables small market shares for foreign products as well as exports. For instance, there are consumers in Europe who prefer US automobiles and vice versa. This explains why there is sometimes a large variety of differentiated products in one product line with some trade, that is called intra-industrial trade, but strong regional preference of demand for each alternative. Intra-industry trade theory provides an explanation for the trade of nation-specdic goods, but fails to explain the global dominance of nation-specific goods.
If countries begin selecting a technology with a different starting configuration they can lock-in to a different technology. If switching costs are high there have to be large global externalities to compensate local externalities as well as switching costs. If not, some countries are fmally locked-in to nation-specific technologies. A second argument for the initial emergence of national designs is that frrrns and governments can successfully promote the adoption of a new technology, for instance through subsidising a product or complementary assets such as infrastructure during the launch period of an innovation.