Disruptive innovation

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In business theory, disruptive innovation is innovation that creates a new market and value network or enters at the bottom of an existing market and eventually displaces incumbent firms, products, and alliances. In theory, disruptive innovation makes it hard for leading firms to stay at the top of their industry. The term, "disruptive innovation" was popularized by the American academic Clayton Christensen and his collaborators beginning in 1995. Not all innovations are disruptive, even if they are revolutionary. For example, the first automobiles in the late 19th century were not a disruptive innovation, because early automobiles were expensive luxury items that did not disrupt the market for horse-drawn vehicles. However, the mass-produced automobile was a disruptive innovation, because it changed the transportation market, whereas the first thirty years of automobiles did not. Disruptive innovations tend to be produced by outsiders and entrepreneurs in startups, rather than existing...

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