Best in brief: How industries change

Discusses how industries change. There are four `trajectories’: radical, progressive, creative and intermediating.

Best In Brief

How industries change

Anita McGahan

Industries follow distinct change trajectories and investment in innovation is more likely to pay off if these pathways are taken into account. According to a study of US companies, industries evolve along four trajectories: radical, progressive, creative and intermediating. A firm cannot maximise its returns unless it is aligned to one of these change pathways and many companies incur losses when they try to innovate outside the change boundaries. Xerox is an example of a firm  famous for its innovations but unable to...

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