The Potential of Technological Innovation in Transforming the Economy: A Framework and its Application to Assess Academic Patents

Abstract

Technological innovation has played a fundamental role in the economic prosperity of firms and countries. Despite several studies on their effects on firms and markets, it is still necessary to assess how introducing technological innovation as innovative products, processes, and services will face extant market forces and transform them. This paper introduces a model for evaluating the potential economic effects of technological innovations based on three dimensions: technological paradigm, market value, and impact on extant industries. Based on the combination of these three dimensions, eight configurations of technological innovations are presented from an intertemporal perspective, considering their impact on the economy. This model has been validated by assessing several academic patents and helps evaluate the market potential of new technologies.