{ "@context": "https://schema.org", "@type": "DefinedTerm", "@id": "https://wulfkaal.github.io/entities/disruptive-innovation", "identifier": "kaal:entity:disruptive-innovation", "name": "Disruptive innovation", "termCode": "disruptive-innovation", "inDefinedTermSet": { "@id": "https://wulfkaal.github.io/entities/index.json" }, "author": { "@type": "Person", "name": "Wulf A. 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Kaal, Erik P.M. Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). SSRN: https://ssrn.com/abstract=2740477", "datePublished": "2016", "claim_type": "failure", "confidence": "argued", "is_failure_mode": true, "scope_conditions": [ "environment of exponential disruptive innovation", "existing regulatory framework of stable rules" ], "source_pdf_sha256": "c72871b76fa2ad5a8a69ee8d3defc8f64e624be9052ce763e79cf6c58883f726", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/2740477-003", "identifier": "kaal:claim:2740477-003", "text": "Exponential disruptive innovation has the potential to overwhelm the existing regulatory process outright, not merely to strain it.", "abstract": "In short, exponential disruptive innovation has the potential to overwhelm the existing regulatory process.", "citation": "Wulf A. Kaal, Erik P.M. Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). 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Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). 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Kaal, Erik P.M. Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). 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Kaal, Erik P.M. Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). 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Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). 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Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). SSRN: https://ssrn.com/abstract=2740477", "datePublished": "2016", "claim_type": "mechanism", "confidence": "argued", "is_failure_mode": true, "scope_conditions": [ "regulation of a disruptive product or service" ], "source_pdf_sha256": "c72871b76fa2ad5a8a69ee8d3defc8f64e624be9052ce763e79cf6c58883f726", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/2740477-021", "identifier": "kaal:claim:2740477-021", "text": "New regulations aimed at an innovative product can be obsolete before they are finalized.", "abstract": "New regulations pertaining to an innovative product could be obsolete before they are finalized.", "citation": "Wulf A. Kaal, Erik P.M. Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). SSRN: https://ssrn.com/abstract=2740477", "datePublished": "2016", "claim_type": "failure", "confidence": "asserted", "is_failure_mode": true, "scope_conditions": [ "formal rulemaking timelines of months to years" ], "source_pdf_sha256": "c72871b76fa2ad5a8a69ee8d3defc8f64e624be9052ce763e79cf6c58883f726", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/2808132-001", "identifier": "kaal:claim:2808132-001", "text": "Regulation is usually reactive because it responds to facts, but the current environment is one of data rather than settled facts; regulation must therefore become proactive and dynamically responsive to data and trends.", "abstract": "Disruptive innovation creates increasing regulatory challenges. The reason for this is simple: Regulation is usually reactive, responding to facts. However, we currently live in a world of data, not facts. Regulation must therefore be proactive and dynamically", "citation": "Wulf A. Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). SSRN: https://ssrn.com/abstract=2808132", "datePublished": "2016", "claim_type": "normative", "confidence": "argued", "is_failure_mode": false, "scope_conditions": [ "environments of exponential disruptive innovation", "where data on emerging trends precedes settled facts" ], "source_pdf_sha256": "3515f2317ed9c1d33ae55d70467cdf1f6c4e350065ea6a887d5d7619599ad7d2", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/2808132-002", "identifier": "kaal:claim:2808132-002", "text": "Ex post facts-based, trial-and-error rulemaking combined with stable and presumptively optimal rules often produces suboptimal regulatory outcomes, and those outcomes are no longer sustainable in an environment of exponential disruptive innovation.", "abstract": "of these. The ex-post facts-based and trial-and-error-rulemaking with stable and presumptively optimal rules7 in the existing regulatory framework8 often produces suboptimal regulatory outcomes that are no longer sustainable in an environment of", "citation": "Wulf A. Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). 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Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). SSRN: https://ssrn.com/abstract=2808132", "datePublished": "2016", "claim_type": "failure", "confidence": "argued", "is_failure_mode": true, "scope_conditions": [ "exponential rather than incremental innovation", "traditional information-dependent rulemaking processes" ], "source_pdf_sha256": "3515f2317ed9c1d33ae55d70467cdf1f6c4e350065ea6a887d5d7619599ad7d2", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/2808132-004", "identifier": "kaal:claim:2808132-004", "text": "Exponential disruptive innovation has the potential to overwhelm the existing regulatory process entirely, not merely to strain it.", "abstract": "increase substantially in the rulemaking process.12 In short, exponential disruptive innovation has the potential to overwhelm the existing regulatory process.13", "citation": "Wulf A. Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). 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Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). SSRN: https://ssrn.com/abstract=2808132", "datePublished": "2016", "claim_type": "failure", "confidence": "evidenced", "is_failure_mode": true, "scope_conditions": [ "incumbent firms facing disruptive rather than sustaining technologies" ], "source_pdf_sha256": "3515f2317ed9c1d33ae55d70467cdf1f6c4e350065ea6a887d5d7619599ad7d2", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/2808132-008", "identifier": "kaal:claim:2808132-008", "text": "Market leaders, successful institutions, and managers fail specifically when they do not distinguish sustaining technologies from disruptive technologies.", "abstract": "markets.38 Market leaders, successful institutions, and managers fail when they do not distinguish sustaining technologies from disruptive technologies.39", "citation": "Wulf A. Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). 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Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). SSRN: https://ssrn.com/abstract=2808132", "datePublished": "2016", "claim_type": "mechanism", "confidence": "argued", "is_failure_mode": true, "scope_conditions": [ "incumbents already burdened by existing rules", "disruptive entrants operating outside or partly outside those rules" ], "source_pdf_sha256": "3515f2317ed9c1d33ae55d70467cdf1f6c4e350065ea6a887d5d7619599ad7d2", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/2808132-012", "identifier": "kaal:claim:2808132-012", "text": "The political system is less likely to be able to resolve the challenges of disruptive innovation because the increasing complexity of innovation-driven regulatory issues causes confusion among political and policy makers about rapidly emerging change.", "abstract": "political system is, however, less likely to be able to deal with the challenges of disruptive innovation because the increasing complexity of innovation-driven regulatory issues causes political and policy makers' confusion over rapidly-emerging disruptive", "citation": "Wulf A. Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). SSRN: https://ssrn.com/abstract=2808132", "datePublished": "2016", "claim_type": "mechanism", "confidence": "argued", "is_failure_mode": true, "scope_conditions": [ "rapidly emerging and technically complex disruptive change" ], "source_pdf_sha256": "3515f2317ed9c1d33ae55d70467cdf1f6c4e350065ea6a887d5d7619599ad7d2", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/2808132-013", "identifier": "kaal:claim:2808132-013", "text": "The existing regulatory infrastructure cannot sufficiently distinguish beneficial innovation from harmful innovation and therefore cannot harness the beneficial kind.", "abstract": "The existing regulatory infrastructure cannot sufficiently distinguish and harness beneficial innovation. Rulemakers' inability to address regulatory issues associated with", "citation": "Wulf A. Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). SSRN: https://ssrn.com/abstract=2808132", "datePublished": "2016", "claim_type": "failure", "confidence": "asserted", "is_failure_mode": true, "scope_conditions": [ "existing regulatory infrastructure without dynamic or anticipatory elements" ], "source_pdf_sha256": "3515f2317ed9c1d33ae55d70467cdf1f6c4e350065ea6a887d5d7619599ad7d2", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/2808132-023", "identifier": "kaal:claim:2808132-023", "text": "Because formal rulemaking takes months and often years, regulators are still processing the previous product launch while new products reach the market, and new regulations pertaining to an innovative product can be obsolete before they are finalized.", "abstract": "rulemaking in the existing regulatory infrastructure, taking months and often years of regulatory procedure, is still dealing with the last product launch. New regulations pertaining to an innovative product could be obsolete before they are finalized.90", "citation": "Wulf A. Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). 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The precautionary principle becomes the default position.", "citation": "Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, Regulation Tomorrow What Happens When Technology Is Faster Than the Law (2017). 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Kaal, Erik P. M. Vermeulen, Legal Education in the Blockchain Revolution (2017). SSRN: https://ssrn.com/abstract=2939127", "datePublished": "2017", "claim_type": "predictive", "confidence": "argued", "is_failure_mode": true, "scope_conditions": [ "worldwide acceleration of disruptive innovation" ], "source_pdf_sha256": "abcef529c7200261c59eec43018375b3b26e3186239fb9d002bacc298dba26ff", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/2957645-002", "identifier": "kaal:claim:2957645-002", "text": "Facts-based, ex-post, trial-and-error rulemaking cannot anticipate the regulatory issues created by innovation, so rulemakers may not realize, or may realize far too late, what new regulatory demands a given innovation generates.", "abstract": "First, because facts-based, ex-post, trial-and-error rulemaking cannot anticipate regulatory issues created by innovation, rulemakers may not realize—or may realize much too late—what new regulatory demands apply to a given innovation and its associated regulatory issue.", "citation": "Kaal, Dynamic Regulation via Contingent Capital (2017). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2957645", "datePublished": "2017", "claim_type": "failure", "confidence": "argued", "is_failure_mode": true, "scope_conditions": [ "regulation of innovative products and markets", "existing regulatory framework built on stable rules" ], "source_pdf_sha256": "250b10782a5ea5dece9235a7f711aee408feaf36f2e78e310d589b5ee6304be2", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/2957645-003", "identifier": "kaal:claim:2957645-003", "text": "Formal rulemaking in the existing regulatory infrastructure is too time consuming, and the speed of product innovation frequently renders regulations pertaining to an innovative product obsolete before those regulations are even finalized.", "abstract": "Formal rulemaking in the existing regulatory infrastructure is overly time-consuming7 and the speed of product innovation often makes regulations pertaining to an innovative product obsolete before such regulations are finalized.8", "citation": "Kaal, Dynamic Regulation via Contingent Capital (2017). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2957645", "datePublished": "2017", "claim_type": "failure", "confidence": "argued", "is_failure_mode": true, "scope_conditions": [ "environments of exponential or rapid product innovation", "formal notice and comment style rulemaking" ], "source_pdf_sha256": "250b10782a5ea5dece9235a7f711aee408feaf36f2e78e310d589b5ee6304be2", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/2957645-004", "identifier": "kaal:claim:2957645-004", "text": "The existing regulatory infrastructure, resting on stable and presumptively optimal rules, is largely incapable of addressing the unknown future contingencies associated with disruptive innovation.", "abstract": "Finally, the existing regulatory infrastructure, with stable and presumptively optimal rules, is largely incapable of addressing the unknown future contingencies associated with disruptive innovation.", "citation": "Kaal, Dynamic Regulation via Contingent Capital (2017). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2957645", "datePublished": "2017", "claim_type": "failure", "confidence": "argued", "is_failure_mode": true, "scope_conditions": [ "regulation confronting disruptive innovation", "reliance on stable and presumptively optimal rules" ], "source_pdf_sha256": "250b10782a5ea5dece9235a7f711aee408feaf36f2e78e310d589b5ee6304be2", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/2957645-006", "identifier": "kaal:claim:2957645-006", "text": "The issuance of contingent capital securities is a promising dynamic regulatory mechanism that can help address the suboptimal regulatory outcomes associated with disruptive innovation.", "abstract": "The issuance of contingent capital securities (CCS) is a promising dynamic regulatory mechanism that can help address the aforementioned suboptimal regulatory outcomes associated with disruptive innovation.", "citation": "Kaal, Dynamic Regulation via Contingent Capital (2017). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2957645", "datePublished": "2017", "claim_type": "design", "confidence": "argued", "is_failure_mode": false, "scope_conditions": [ "financial institutions capable of issuing contingent capital securities" ], "source_pdf_sha256": "250b10782a5ea5dece9235a7f711aee408feaf36f2e78e310d589b5ee6304be2", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/3411897-010", "identifier": "kaal:claim:3411897-010", "text": "Market leaders, successful institutions, and managers fail specifically when they do not distinguish sustaining technologies from disruptive technologies.", "abstract": "Market leaders, successful institutions, and managers fail when they do not distinguish sustaining technologies from disruptive technologies.", "citation": "Wulf A. Kaal, Decentralization - Past, Present, and Future (2019). SSRN: https://ssrn.com/abstract=3411897", "datePublished": "2019", "claim_type": "failure", "confidence": "argued", "is_failure_mode": true, "scope_conditions": [ "environments in which disruptive innovation is present" ], "source_pdf_sha256": "82f0aea026b3e3a526ec51bc073b3b864dc06cd9083ff9c54c550037045edaa9", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/3411897-011", "identifier": "kaal:claim:3411897-011", "text": "A market leader's lack of investment in disruptive technologies often causes abrupt loss of market dominance and even total replacement, because market leaders shortsightedly refuse to cannibalize their own dominance through disruptive technologies.", "abstract": "A market leader's lack of investment in disruptive technologies often results in the abrupt loss of market dominance and often even total replacement in such markets. Market leaders often shortsightedly refuse to cannibalize their market dominance through the use of disruptive technologies.", "citation": "Wulf A. Kaal, Decentralization - Past, Present, and Future (2019). SSRN: https://ssrn.com/abstract=3411897", "datePublished": "2019", "claim_type": "failure", "confidence": "argued", "is_failure_mode": true, "scope_conditions": [ "markets subject to disruptive technological entry" ], "source_pdf_sha256": "82f0aea026b3e3a526ec51bc073b3b864dc06cd9083ff9c54c550037045edaa9", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/3411897-012", "identifier": "kaal:claim:3411897-012", "text": "Nokia, Kodak, and Blackberry all collapsed after fast changes in their markets rendered their products and services irrelevant, illustrating that successful companies drift into obscurity when they fail to embrace change.", "abstract": "examples of successful companies that drifted into obscurity after failing to embrace change. Nokia, Kodak, and Blackberry are prominent examples. All these firms collapsed after fast changes in their respective markets rendered their products/services irrelevant.", "citation": "Wulf A. Kaal, Decentralization - Past, Present, and Future (2019). SSRN: https://ssrn.com/abstract=3411897", "datePublished": "2019", "claim_type": "failure", "confidence": "evidenced", "is_failure_mode": true, "scope_conditions": [ "firms facing rapid market change" ], "source_pdf_sha256": "82f0aea026b3e3a526ec51bc073b3b864dc06cd9083ff9c54c550037045edaa9", "status": "current" }, { "@type": "Claim", "@id": "https://wulfkaal.github.io/claims/3808859-002", "identifier": "kaal:claim:3808859-002", "text": "Market leaders fail against disruptive technologies because they shortsightedly refuse to cannibalize their own dominant position, and that refusal often produces abrupt loss of market dominance or total replacement.", "abstract": "A market leader's lack of investment in disruptive technologies often results in the abrupt loss of market dominance or even total replacement in such markets. Market leaders often shortsightedly refuse to cannibalize their market dominance", "citation": "Wulf A. Kaal, Decentralization – Why We Need Technology Infrastructure Upgrades (2021). SSRN: https://ssrn.com/abstract=3808859", "datePublished": "2021", "claim_type": "failure", "confidence": "argued", "is_failure_mode": true, "scope_conditions": [ "incumbent firms with an established customer base facing lower-end entrants" ], "source_pdf_sha256": "304ad25d43b5ecea3158e3a2ca04e6e1e3bd2958e2134e2dcefbfedf3b6f3ab7", "status": "current" } ], "description": "35 claims in the published works of Wulf A. Kaal carry the concept tag 'disruptive-innovation'. Derived node: a roster, not an adjudicated definition." }