Search

Ratio Working Paper No. 267: Velocity shifts in the creative economy

PublicationWorking paper
Ekonomisk historia, Entreprenörskap, Företagandets villkor, Forskning, Mirko Ernkvist, Spelindustri
Ratio Working Paper No. 267
Download

Abstract

The Japanese innovation system has been characterized as more prone to disruptive innovation by incumbent firms rather than de novo entrepreneurial entrants (H. W. Chesbrough, 1999). We draw upon the notion that creative industry competition in a high velocity environment is fundamentally different from an environment of more moderate velocity, exploring the notion that velocity shifts following disruptive innovation could be a key underlying mechanism for transformation by entrants in institutional settings that favor incumbents. A higher velocity environment provides a cognitive barrier to incumbent firms’ R&D by making established design heuristics obsolete, introducing novel market analytic methods and shifting established industry logics towards speed, constant iteration and services. The velocity shift in the transition from video games to social games required new specialized assets and new ways of accessing customer preferences though real-time data mining techniques that also challenged engrained cognitive frames of how game design should be pursued. Unlike previous disruptive innovation in the game industry, social games enabled new entrants to rapidly become market leaders. The case points towards a more nuanced view of the influence of disruptive innovation during velocity shifts in creative industries. For studies of technological entrepreneurship, this implies that the velocity shifts following disruptive innovation could provide a previously overlooked important mechanism in understanding how entrants have been able to challenge incumbent firms in Japan.

Ernkvist, M. (2015). Velocity shifts in the creative economy. Ratio Working Paper No. 267. Stockholm: Ratio.

Based on content

Ratio Working Paper No. 267: Velocity shifts in the creative economy
Working paperPublication
Ernkvist, M.
Publication year

2015

Published in

Ratio Working Paper

Abstract

The Japanese innovation system has been characterized as more prone to disruptive innovation by incumbent firms rather than de novo entrepreneurial entrants (H. W. Chesbrough, 1999). We draw upon the notion that creative industry competition in a high velocity environment is fundamentally different from an environment of more moderate velocity, exploring the notion that velocity shifts following disruptive innovation could be a key underlying mechanism for transformation by entrants in institutional settings that favor incumbents. A higher velocity environment provides a cognitive barrier to incumbent firms’ R&D by making established design heuristics obsolete, introducing novel market analytic methods and shifting established industry logics towards speed, constant iteration and services. The velocity shift in the transition from video games to social games required new specialized assets and new ways of accessing customer preferences though real-time data mining techniques that also challenged engrained cognitive frames of how game design should be pursued. Unlike previous disruptive innovation in the game industry, social games enabled new entrants to rapidly become market leaders. The case points towards a more nuanced view of the influence of disruptive innovation during velocity shifts in creative industries. For studies of technological entrepreneurship, this implies that the velocity shifts following disruptive innovation could provide a previously overlooked important mechanism in understanding how entrants have been able to challenge incumbent firms in Japan.

The Role of Dual Institutional- and Technological Entrepreneurship in the Formation of the Japanese Social-Game Industry
Book chapterPublication
Ernkvist, M.
Publication year

2016

Abstract

Ernkvist argues that entrepreneurial agency from outside the dominating video-game industry in Japan enables the emerging social-game sector to break with established institutional structures and experiment with new, contested alternatives. The chapter explicates a dual entrepreneurship function involving both technological entrepreneurship to introduce new game platforms and institutional entrepreneurship to proactively change the institutional environment. It also identifies four contested key issues in the formation of the social-game industry, which provides the perspective of western understanding of game marketing and development, a new alternative business model in Asia.

The Role of Dual Institutional- and Technological Entrepreneurship in the Formation of the Japanese Social-Game Industry
BokkapitelPublication
Ernkvist, M.
Publication year

2016

Abstract

Ernkvist argues that entrepreneurial agency from outside the dominating video-game industry in Japan enables the emerging social-game sector to break with established institutional structures and experiment with new, contested alternatives. The chapter explicates a dual entrepreneurship function involving both technological entrepreneurship to introduce new game platforms and institutional entrepreneurship to proactively change the institutional environment. It also identifies four contested key issues in the formation of the social-game industry, which provides the perspective of western understanding of game marketing and development, a new alternative business model in Asia.

Show more