Lesson 1, Topic 1
In Progress

9.7 Innovation Risk

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The entrepreneurial ecosystem described earlier in this book indicated that individuals, firms, and organizations are interconnected in ways that impact each other. According to Matthews and Brueggemann (2015), co- innovation risk occurs when multiple actors in the ecosystem attempt to innovate, which leads to the possibility that a new innovation developed by one company is ready at a different time than a dependent second innovation developed by another firm. For example, it can be disastrous for a computer hardware company to release a new product that is dependent upon new software if the company developing that software does not make it available on time.

Adoption chain risk also occurs when multiple firms in the value chain are simultaneously developing new products and services. If one firm, for example, releases a product that must be serviced by a different company before that other company is prepared to offer that service, the product release can fail (Matthews & Brueggemann, 2015).