Reference no: EM13492991

What traits appear to make individuals most creative? Are these the same traits that lead to successful inventions?

Why do many markets coalesce around a single dominant design rather than support a variety of technological options? One primary reason is that many industries exhibit increasing returns to adoption, meaning that the more a technology is adopted, the more valuable it becomes. 7 Complex technologies often exhibit increasing returns to adoption in that the more they are used, the more they are improved. A technology that is adopted usually generates revenue that can be used to further develop and refine the technology. Furthermore, as the technology is used, greater knowledge and under-standing of the technology accrue, which may then enable improvements both in the technology itself and in its applications. Finally, as a technology becomes more widely adopted, complementary assets are often developed that are specialized to operate with the technology. These effects can result in a self- reinforcing mechanism that increases the dominance of a technology regardless of its superiority or inferiority to competing technologies. Two of the primary sources of increasing returns are ( 1) learning effects and ( 2) network externalities.