Managing technological convergence: Evidence from printed intelligence industry

Abstract

The field of technological convergence is relatively unexplored, even though its growing impact is widely recognized. The objective of this paper is to analyse how industry convergence and technological trajectories affect the evolution of industries. The paper identifies different convergence types and utilises the framework to analyse the evolution of printed intelligence markets and RFID markets. Research material is based on the main RFID industry players, patent data, and 12 semistructured interviews made by the research group. RFID companies were characterized into four different clusters within following headings: vertically integrated players, upstream focused players, downstream players, and PPI & printing companies. The results reveal that the emerging industry is in the early stages of the evolution were market dynamics is driven by complementary technological convergence. Patent and market data analysis also reveals that previously distinct technological trajectories of the industries have started to overlap and merge together to form new products based on integrated technologies. We found, however, that the process of technological convergence in the supply side does not mean market diversification. In parallel with convergence with printed, electronic and hybrid media industries, a restructuring of industries is taking place in near future. Paper industry will have an opportunity to take a significant role in the development through technology expansion and succeeding in the complementary innovations as well as cooperation with new entrants.