Title
The Origins of New Industries: The case of the mobile Internet
Abstract
This paper describes a model of new industry formation that is based on
evolutionary theories of technical change. It represents the origins of
new network industries as the interaction between multiple technological
trajectories that are specific to a particular technology or broadly defined
technological regime. The speed with which these multiple trajectories
cause industry formation depends on their effective application to the
most economical applications; this process occurs through the interaction
between design hierarchies and market concepts.
Growth in these initial applications causes sub-trajectories
or sub-regimes, where competition in the new industry initially takes place,
to emerge from the main trajectories. The model is applied to the mobile
Internet, an industry that has just started to grow particularly in Japan
and Korea.