Hostname: page-component-76fb5796d-vvkck Total loading time: 0 Render date: 2024-04-26T19:26:51.632Z Has data issue: false hasContentIssue false

A Law of Functional Expansion - Eliciting the Dynamics of Consumer Goods Innovation with Design Theory

Published online by Cambridge University Press:  26 July 2019

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

For more than two decades, mobile phone industry has shown that innovation is not only functional optimization and combination but can also be a "functional expansion”. Sometimes called radical or disruptive innovation, this phenomenon leads to the development of new method for engineers and designers. However, the intensity remains undemonstrated: is functional expansion a rare phenomenon (few products during very short periods of time) – or is it an intense phenomenon, that even might have accelerated in the last decades? To answer these questions, the paper overcomes two main obstacles: how to measure functional expansion? And what would be a law of functional expansion, that would enable to test the importance and newness of the phenomena? Building on recent advances on the measurement of innovation and on new computational models of design derived from most advanced design theories, this paper presents unique data on functional expansion of 8 consumer products and tests that functional expansion significantly accelerated in the mid 1990s. The paper confirms quantitatively that our societies are now in a new design regime, a regime of innovative design.

Type
Article
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
© The Author(s) 2019

References

Aghion, P. and Howitt, P. (1992), “A Model of Growth Through Creative Destruction”. Econometrica, Vol. 60 No. 2, pp. 323351.Google Scholar
Arthur, W.B. (2009), The Nature of Technology. What it is and how it evolves. Free Press, New YorkGoogle Scholar
Becker, M.C., Knudsen, T. and March, J.G. (2006), “Schumpeter, Winter, and the sources of novelty. Industrial and Corporate Change, Vol. 15 No. 2, pp. 353371.Google Scholar
Bresnahan, T.F. and Trajtenberg, M. (1995), “General Purpose Technologies: Engines of Growth?Journal of Econometrics, Vol. 65 No. 1, pp. 83108.Google Scholar
Christensen, C.M. (1993), “Exploring the limits of the technology S-Curve, part 1: components technologies”. Production and Operations Management, Vol. 1 No. 4 (Fall 1992).Google Scholar
Christensen, C.M. (1997), “The Innovator's Dilemma. When New Technologies Cause Great Firms to Fail”. The Management of Innovation and Change. Harvard Business School Press, Boston, MAGoogle Scholar
David, P.A. (1985), “Clio and the Economics of QWERTY”. American Economic Review, Vol. 75 No. 2, pp. 332337.Google Scholar
El Qaoumi, K., Le Masson, P., Weil, B. and Ün, A. (2017), “Testing evolutionary theory of household consumption behavior in the case of novelty - a product characteristics approach”. Journal of Evolutionary Economics.Google Scholar
Fink, T.M.A, Reeves, M., Palma, R. and Farr, R.S. (2017), “Serendipity and strategy in rapid innovation”. Nature Communications, Vol. 8 No. 1, p. 2002.Google Scholar
Glimstedt, H. (2018), Re-Thinking Apple's Entry and PLatform Leadership in Smartphones. Paper presented at the Industry Studies Association Annual Conference, Seattle.Google Scholar
Jones, C.I. (1995), “Time Series Tests of Endogenous Growth Models”. Quarterly Journal of Economics, May Vol. 1995, pp. 495525.Google Scholar
Kokshagina, O. (2014), Risk Management in Double Unknown: Theory, Model and Organization for the Design of Generic Technologies. MINES ParisTech, ParisGoogle Scholar
Lancaster, K. (1991), Modern Consumer Theory. Edward Elgar Publishing Limited, Brookfield Vermont, USAGoogle Scholar
Lancaster, K.J. (1966), “A New Approach to Consumer Theory”. The Journal of Political Economy, Vol. 74 No. 2, pp. 132157.Google Scholar
Le Masson, P., Hatchuel, A., Kokshagina, O. and Weil, B. (2016), “Designing Techniques for Systemic Impact - Lessons from C-K theory and Matroid Structures”. Research in Engineering Design Vol. 28 No. 3, pp. 275298.Google Scholar
Le Masson, P., Weil, B. and Hatchuel, A. (2010), Strategic Management of Innovation and Design. Cambridge University Press, CambridgeGoogle Scholar
Le Masson, P., Weil, B. and Hatchuel, A. (2017), “Design Theory - Methods and Organization for Innovation”. Springer Nature. http://doi.org/10.1007/978-3-319-50277-9Google Scholar
Nelson, R. and Consoli, D. (2010), “An evolutionary theory of household consumption behavior”. Journal of Evolutionary Economics, Vol. 20 No. 5, pp. 665687.Google Scholar
O'Connor, G.C. (1998), “Market Learning and Radical Innovation: A Cross Case Comparison of Eight Radical Innovation projects”. Journal of product innovation management, Vol. 15 No. 2, pp. 151166.Google Scholar
Saviotti, P.P. (2001), “Variety, growth and demand”. Journal of Evolutionary Economcs, Vol. 11 No. 1, pp. 119142.Google Scholar
Saviotti, P.P. and Metcalfe, J.S. (1991), Evolutionary Theories of Economic and Technological Change. Harwood Academic Publishers, Newark, N.J.Google Scholar
Witt, U. (2009), “Propositions about Novelty”. Journal of Economic Behavior and Organization, Vol. 70 No. 1–2, pp. 311320.Google Scholar