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 - Bruce (1999) Factors include 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 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.