A derivative innovation is a new product or service that is based on an existing product or service, but with some improvements or modifications. It builds upon previous innovations, enhancing or expanding their capabilities.
Examples of Derivative Innovations:
- Smartphones: Building upon the existing technology of mobile phones, smartphones introduced new features like internet connectivity, touchscreen interfaces, and app stores.
- Electric Vehicles: Derivative innovation builds upon the internal combustion engine car, but replaces the gasoline engine with an electric motor and battery system.
- High-Definition Televisions: Derivative innovation in television technology has led to higher resolutions (HD, 4K, 8K), improved picture quality, and enhanced sound systems.
- Cloud Computing: Derivative innovation built upon the existing concept of computing, but shifted the processing and storage to remote servers accessible through the internet.
Characteristics of Derivative Innovations:
- Incremental: They often involve smaller changes and improvements to existing products or services.
- Evolutionary: They build upon existing technologies and concepts, rather than creating something entirely new.
- Faster to market: They typically require less research and development time compared to radical innovations.
- Lower risk: They are often based on proven technologies and markets, making them less risky to develop.
Practical Insights:
Derivative innovations are essential for companies to stay competitive in the market. By continuously improving their products and services, they can meet evolving customer needs and stay ahead of the competition.
Conclusion:
Derivative innovations play a crucial role in technological advancement and market evolution. They build upon existing innovations, improving upon them and creating new opportunities.
