Technological theories
1. Scientific paradigm – When an initial opinion is altered due to change in technology,
resulting in a more accurate opinion being formed.
Example: Earth was thought to be flat however, due to development in technology, the
earth is now known to be round.
As the new opinion becomes more prominent within society, a technological paradigm shift
occurs leading to breakthroughs such as antibiotics and micro – chips.
2. Creative destruction – linking to the scientific paradigm
Creative destruction refers to dramatic changes associated with new technology i.e.
paradigm shift.
Example: Henry Ford’s assembly line has evolved over time however, the destruction aspect
is the loss of jobs whereas the creative aspect is the development of technology as
machines are now able to engineer processes i.e. car manufacturing.
3. Long wave cycle – shows economic activity over the course of 50 years.
Four stages include
1. Recovery
New products/services
Competing designs among firms
High novelty
2. Prosperity
Spread of innovation
New technology which spreads to other industries
New markets emerge
3. Recession
Risky investments/collapses
4. Depression
New industries mature
Inventions/ discoveries of next phase begin
Example: During the 1700s, materials such as cotton and iron was used, this differs to the
materials used in the following 50 years which included steam power.
This demonstrates the various stages of the long wave cycle and how preferences alter as
time develops.
Theories of innovation
1. Technology S curve –
3
Performance
VHS
tapes
DVD
2
1
Engineering effort
1. Performance improves rapidly
2. Technology matures
3. Technology is limited, performance declines
= Next generation
2. Absorptive capacity
Ability to gain knowledge from external source and apply it to own commercial sector
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Bruce (1999)
Factors include 
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Exposure to relevant knowledge
Presence of prior related knowledge
Diversity of knowledge
Example: McLaren International F1
Expertise was needed to build the carbon fibre
They had an understanding of what worked for the brand and what could be improved
3. Punctuated equilibrium
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Technology evolves however, it moves in a series of fits.
Only incremental innovations take place.
Long periods will be broken by abrupt changes in technology.