Disruptive Innovation

Cite this article as:"Disruptive Innovation," in The Business Professor, updated April 23, 2020, last accessed June 3, 2020, https://thebusinessprofessor.com/lesson/disruptive-innovation/.

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What is Disruptive Innovation?

Disruptive innovation, first proposed by Harvard Professor, Clayton Cristensen, concerns the creation of new markets or value networks through innovations. The innovations disrupt, and often displace, existing markets, value networks, and economies. Governments and industry regulators must often work from behind to address disruptions that destabilize systems or create economic disparity.

Generally, an innovation must be widely and rapidly adopted to be considered disruptive.

Examples of Disruptive innovation

An example of disruptive innovation would be Uber. It completely upended the taxi market and created a new market for independent drivers. Airbnb did the same thing within the hotel and travel industry.

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