ON THE DEFINITION AND MEASUREMENT OF TECHNOLOGICAL DISCONTINUITIES

Technological discontinuities often have disruptive effects on the structure of an industry. The industry frequently de-matures and exhibits more infant characteristics. Established firms often face severe difficulties in adjusting to the new technology. In this paper we critically review the literature dealing with technological discontinuities. Several observations are made. First there is great confusion in the literature regarding definitions of what it is that undergoes a discontinuous change. Second, the various foci of analysis are also confusing. Third, most of the researchers who have studied technological change as a change in competence do not report how they have measured the degree of technical change, although all proposed to study a major technological change.