Definition of Disrupted Innovation

In a business theory, disruptive innovation is an innovation that significantly affects the way an industry or a whole market functions. This also creates new markets and value markets that have a great impact on the existing market and value market affecting market-leading firms, products, or services.


Example of Disrupted Innovation:

The biggest example of disruptive innovation is the Internet which significantly changes many companies’ way of doing their business and hit hard on companies who refused to adopt the internet.

Disrupted innovation is created by entrepreneurs, startups, or outsiders who are not existing market-leading companies.  Disruptive innovation takes greater time to develop as compared to traditional innovation with the higher risk involved with them, but when established, it has a higher penetration rate and high impact on the existing markets.

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