This presentation discusses the co-evolution of technological and entrepreneurial developments in new industries, using the drone industry as a case study. It describes how drone technology originated in the military but has since evolved to have new meanings as toys and professional tools. New industries and market segments have emerged as startups explore new applications and established firms enter to protect existing markets or provide complementary elements. The presentation argues that both "de novo" startups and "de alio" new entrants from other industries play important roles - with startups contributing to changing technology meanings and established firms helping build new product categories through cooperation and competition.
Co-evolution of tech and entrepreneurship in drone industry
1. The co-evolution of technological and
entrepreneurial developments
Ferran Giones
2018
SDU - MADS CLAUSEN INSTITUTE
This presentation builds from research insights published in:
Giones, F. and Brem, A. (2017) ‘From toys to tools: The co-evolution of technological and entrepreneurial developments in
the drone industry’, Business Horizons, 60(6), pp. 875–884. doi: 10.1016/j.bushor.2017.08.001
Bjornali, E. S., Giones, F. and Billström, A. (2017) ‘Reveal or Conceal? Signaling Strategies for Building Legitimacy in
Cleantech Firms’, Sustainability, 9(10), pp. 1–19. doi: 10.3390/su9101815.
Source: DJI Phantom 2 with GoPro by Börn,
licensed under CC BY 2.0
2. MADS CLAUSEN INSTITUTE
Starting point
2
http://www.game-changer.net/2016/08/29/10-emerging-technologies-that-will-drive-the-next-economy
3. MADS CLAUSEN INSTITUTE
Starting point
3
Have we actually learned something?
What is the contribution of tech entrepreneurs?
Thanks to Tim Schweisfurth for sharing the article: Meinhart, W. A. (1966)
‘Artificial intelligence , computer simulation of human cognitive and ...’,
Academy of Management Journal, 9(4), pp. 294–307.
http://www.game-changer.net/2016/08/29/10-emerging-technologies-that-will-drive-the-next-economy
4. MADS CLAUSEN INSTITUTE
Story of the research
• We study the drone industry to answer:
• When does technological progress
create new industries?
• How does the industry emergence
process unfold?
4
Source: DJI Phantom 2 with GoPro by Börn,
licensed under CC BY 2.0
• We explore the co-evolution dynamics between technology
and entrepreneurial developments.
• Identify drivers of technology-meaning changes and
industry categories emergence.
5. MADS CLAUSEN INSTITUTE
The case of the drone industry:
Context:
• Case of the tech development and drone uses:
• From military beginnings…
• To civilian: toys and much more…
5
l
1900s
l
1970s
l
2000s
l
1950s – 1960s
l
1980s
l
1990s
Target Drones
developed
MilitaryCivilian
Drones used for
reconnaissance
missions
Drones used as
decoy
Drones with real-time
surveillance & radar
Drones for combat, surveillance
and carry armament
l
2010s
Drones for logistics –
first packet delivery
l
2015
Drones for combat, attack
targets withmissiles
Drones for mapping, aerial
photography
Drones for
recreational use
Drones for industrial
inspections & security,
precision agriculture
Drones for filming &
broadcasting
6. Military Drone Technology base:
Avionics, GPS, Control Units
High Performance
Cameras
New
Sensors
New
Processors
Technology emergence
7. Military Drone Technology base:
Avionics, GPS, Control Units
Concept
Validation
Product
Growth
Market
Growth
Technology meaning change
Industryemergence
High Performance
Cameras
New
Sensors
New
Processors
Technology emergence
8. Military Drone Technology base:
Avionics, GPS, Control Units
Concept
Validation
Product
Growth
Market
Growth
Technology meaning change
Industryemergence
Drones as toys
High Performance
Cameras
New
Sensors
New
Processors
Technology emergence
9. Military Drone Technology base:
Avionics, GPS, Control Units
Concept
Validation
Product
Growth
Market
Growth
Technology meaning change
Industryemergence
Drones as toys Drones as a professional tool
High Performance
Cameras
New
Sensors
New
Processors
Technology emergence
10. Military Drone Technology base:
Avionics, GPS, Control Units
Concept
Validation
Product
Growth
Market
Growth
Technology meaning change
Industryemergence
Drones as toys Drones as a professional tool
High Performance
Cameras
New
Sensors
New
Processors
Technology emergence
Market is structured, with one or
multiple segments:
• Start-ups as new entrants explore
new applications.
• Established firms as new entrants
interested in protecting existing
market.
The product/s category/ies
emergence:
• Start-ups as new entrants emerge
as product leaders.
• Established firms entrants offer
advanced components and
complementary elements.
First products are launched
• Start-up entrants benefit from
knowledge spillover.
• Limited activity by existing firms
that miss the first steps of the
industry.
11. Military Drone Technology base:
Avionics, GPS, Control Units
Technology meaning changeIndustryemergence
High Performance
Cameras
New
Sensors
New
Processors
Technology emergence
Market is structured, with one or multiple
segments:
•Start-ups as new entrants explore new applications.
•Established firms as new entrants interested in
protecting existing market.
The product/s category/ies emergence:
•Start-ups as new entrants emerge as product
leaders.
•Established firms entrants offer advanced
components and complementary elements.
First products are launched
•Start-up entrants benefit from knowledge
spillover.
•Limited activity by existing firms that miss the
first steps of the industry.
12. Military Drone Technology base:
Avionics, GPS, Control Units
Concept
Validation
Product
Growth
Market
Growth
Technology meaning change
Industryemergence
Drones as toys Drones as a professional tool
High Performance
Cameras
New
Sensors
New
Processors
Technology emergence
Market is structured, with one or
multiple segments:
• Start-ups as new entrants explore
new applications.
• Established firms as new entrants
interested in protecting existing
market.
The product/s category/ies
emergence:
• Start-ups as new entrants emerge
as product leaders.
• Established firms entrants offer
advanced components and
complementary elements.
First products are launched
• Start-up entrants benefit from
knowledge spillover.
• Limited activity by existing firms
that miss the first steps of the
industry.
13. Concept
Validation
Product
Growth
Market
Growth
Technology meaning changeIndustryemergence
Drones as toys Drones as a professional tool
• Recreational use
• Inspection services: industry,
agriculture, farming
• Surveillance & Security
• Large cargo logistics
• Small Package deliveries
Technology emergence
• Photography
• Filming
• Mapping
New
Sensors
New
Batteries
New
Cameras
New
Processors
New
Engines
14. Concept
Validation
Product
Growth
Market
Growth
Technology meaning changeIndustryemergence
Drones as toys Drones as a professional tool
• Recreational use
• Inspection services: industry,
agriculture, farming
• Surveillance & Security
• Large cargo logistics
• Small Package deliveries
Technology emergence
• Photography
• Filming
• Mapping
New
Sensors
New
Batteries
New
Cameras
New
Processors
New
Engines
16. Norman, D. A. and Verganti, R. (2014) ‘Incremental and Radical Innovation: Design Research vs.
Technology and Meaning Change’, Design Issues, 30(1), pp. 78–96. doi: 10.1162/DESI_a_00250.
17. MADS CLAUSEN INSTITUTE
But….
When can entrepreneurs take advantage of technology changes?
….or do established players benefit the most?
17
18. MADS CLAUSEN INSTITUTE
In already defined industries…
We know that it is hard for entrepreneurs to change rules:
• Who owns the contacts with clients, sales, distribution, key
resources… controls what happens.
• (think in the business model logic)
• At least for a while…
18
https://www.telefonica.com/en/web/press-office/-/telefonica-to-integrate-netflix-into-its-tv-
and-video-platforms-in-latin-america
20. MADS CLAUSEN INSTITUTE
Although it might actually be a
complementary game:
• Two types of new entrants:
• ”de novo”: new firms – entrepreneurs entering.
• “de alio”: new entrants that are divisions / spin-offs from larger companies
• What have we seen:
• New entrants (de novo) contribution to technology meaning change.
• Entrants from other industries (de alio) contribute to category building
• You need both of them!!
• Generate patterns in co-evolution dynamics.
20
21. Military Drone Technology base:
Avionics, GPS, Control Units
Concept
Validation
Product
Growth
Market
Growth
Technology meaning change
Industryemergence
Drones as toys Drones as a professional tool
High Performance
Cameras
New
Sensors
New
Processors
Technology emergence
Market is structured, with one or
multiple segments:
• Start-ups as new entrants explore
new applications.
• Established firms as new entrants
interested in protecting existing
market.
The product/s category/ies
emergence:
• Start-ups as new entrants emerge
as product leaders.
• Established firms entrants offer
advanced components and
complementary elements.
First products are launched
• Start-up entrants benefit from
knowledge spillover.
• Limited activity by existing firms
that miss the first steps of the
industry.
22. MADS CLAUSEN INSTITUTE
End point
22
There will be opportunities, in particular if we manage to change
the meaning of technology and create new industries
http://www.game-changer.net/2016/08/29/10-emerging-technologies-that-will-drive-the-next-economy
Editor's Notes
There is undoubtedly hype around drones and their applications for private and professional users.
Based on a brief overview of the development of the drone industry in recent years, this article examines the co-evolution of drone technology and the entrepreneurial activity linked to it.
Our results highlight the industry emergence described as concept validation, including product as well as market growth with different phases of technological meaning change.
We argue that further steps are needed to develop drones from nice toys to professional tools–—from photography and filming applications to inspection services and large cargo logistics.
For innovation managers and entrepreneurs, we describe what triggers the emer- gence of a technology and attracts the needed actors to unleash its transformative potential.
Our research is based on industry reports, news, and market studies as well as interviews with four industry actors.