S.C. a rise in the scale of market

S.C. Gilfillan in 1935 introduced modified models of endogenous innovation to allow the possibility of innovation activity could lead to an increase variety of different solution of similar problem. An increased variety of technologies (in terms of their number and function) will increase the number of utility of an average consumer. If however, continued improvement in this variety of technologies requires increased research input, a rise in the scale of market could enhance the equilibrium quantity of R&D without increasing economy growth rate. Also, the increased product variety brought by increased market size might reduce the returns to improved product quality paradoxically reducing economy growth rate while increasing total resources to R&D.When the pre-existing technology is been accelerated with unique innovation and creativity we can observe the effectiveness of the technology with respect to the time, this leads to the threat to established technology which  usually triggers existing companies to improve it. This notion comes from an observation by S.C. Gilfillan who noted that the best sailing ships were produced when steam ships had already displaced them.Overview of various approaches of Sailing Ship-Effect:Common to all definitions is the element that emerges after a new, typically potentially more powerful technology innovations in the old technology. Almost all of these definitions remain together that a strategic impetus on the part of providers of old    technologies. The furthest in this regard are probably Adner and Snow discussing in detail the various sub-alternatives of reaction scrutinize for new technologies. 18 others describe it rather the phenomenon from a macro perspective and do not really go up the strategic decision to compete old vs. new technology on. 19 Another observation considering the existing literature the definition of sailing-ship behavior is the often negative connotation this behavior. This connotation also finds its approval in the broadMost of the innovation literature that implicitly “prefers” the new technology and adhering to the old as the long term often makes little sense – without actually substantiating this in individual cases. Based on the definition approaches shown, the following procedure should be followed The following summarized definition applies: The Sailing Ship Effect describes the phenomenon that providers of established technology after thawing new technology threatening established technology with over- standard innovation efforts in the key performance dimensions .Thus, the proposed definition includes both a strategic one component that reacts to the sailing ship effect as a selectable strategy understand new and threatening technologies, as well as the aspect that is “regular” innovation in the normal industry competition is not sufficient which is characteristic of the sailing ship effect. The last point presents by emphasizing relevant and possibly new performance Dimensions depend on the sailing-ship effect specific to the new one Technology must be targeted. Furthermore, supernormal innovation efforts that are not limited to, for example, normal competition.Empirical ApproachesThe investigation of the Sailing Ship Effect focuses in particular on narrative approaches in which various technological changes have been written. In the following overview, the central contents the existing case studies on technological change with special focus on the innovative response of the old technology are presented:• Propeller versus Jet: In the civil aviation industry after the Second World War for USA and UK, the jet Engine technology introduced. Especially the first jet planes kept to the classic design sign and were therefore at high speeds and unstable. Only the Boeing 707 reached high stability due to new design. The old technology first responds to the offer cheaper machines and gave way to segments with high stability requirements which is designed for play military transport machines• Gas lamp versus light bulb: With the appearance of Edison’s light bulb, the suppliers of gas lamps called the so-called “Welsbach Mantle”, which improves the efficiency of gas lamps lead to increase by a factor of about five. As a result, the displacement could be light bulbs are still delayed for some time become.• Electric tubes versus transistor:Suppliers of traditional electric tube Technology tried to threaten transistors by a much improved price performance ratio in the market to counter. So were the most reliable and smallest electric tubes after the introduction of the transistors offered.• Digital versus analog camerasThe first CCD sensor for digital display became Kodak in the 1960s developed. This first diffused in a lot special areas (for example, optical Quality control, and space flight). For the Consumer market formed in the 1990s Alternatives in old technology (for example APS format), which is an enforcement of new technology delayed even longer. 2G versus 3G mobileWith the emergence of technological innovations of UMTS technology (3G) was the former standard 2G by packet data once again significantly accelerated. With this innovation (EDGE technology) took the old technology after the emergence of the new technology once again has a clear performance jump.In some cases, these studies also focus on individual quantitative data sources, such as comparisons of performance counters or cost statements, resorted to. A systematic quantitative analysis search of the technology-competitive conditions recently. Furthermore, the research examples shown above are very different often not whether the innovation in the old technology as a reaction or whether it is a “normal” innovation behavior, which even without the perception of a new competitive te chnology took place.Microeconomic Approaches: