Saturday, October 15, 2011

Where does value fit in innovation?

Figure 1 shows the black box of value in the context of innovation theory. Value sits between the innovators creation of an innovation, and the process of diffusion of innovation. I argue consumer value acts as a hurdle to diffusion (see Section 6.3, Proposition 1).

Proposition 1. Value drives consumer action. Consumers adopt new technology when they see value.

Figure 1: What is consumer value? This thesis opens the black box of consumer value.