The implication of path-dependence on industrial survival

The emergence of new radical technologies demands innovative answers of an established industry. With reference to the threat of obsolescence, research in the Home Entertainment Industry´s innovation strategies presents a paradigm, which suggests that due to path-dependence, this particular industry suffers from a lock-in effect in its core technology, which is enhanced by deep roots in monocultures of product, infrastructure and client base. Long-term research argues that these three causes effect a holistic lock-in, globally expressed in declining demand. Industrial experts expect the obsolescence of the manufacturing part of this industry in the near future. The conclusion is that the path-dependent innovations made are too marginal for survival on radically changing markets.