Innovation: Mapping the winds of creative destruction *

This paper develops a framework for analyzing the competitive implications of innovation. The framework is based on the concept of transilience the capacity of an innovation to influence the established systems of production and marketing. Application of the concept results in a categorization of innovation into four types. Examples from the technical history of the US auto industry are used to illustrate the concepts and their applicability. The analysis shows that the categories of innovation are closely linked to different patterns of evolution and to different managerial environments. Special emphasis is placed on the role of incremental technical change in shaping competition and on the possibilities for a technology based reversal in the process of industrial maturity.