Demand pull

Application innovations, e.g. also the cross-adaptation of solutions from one branch of industiy to products or processes in another branch of industry, form an important mechanism in the substitution of hazardous substances. This apphes both to the demand pull as well as to the technology push. An essential reason should be in the faet that they are frequently relatively non-eapital-intensive. For successful substitution of hazardous substances using this method the degree of networking between different clusters of market aetors and hmited legal barriers are of considerable significance for the enhaneement of substanee applioations. 

Dierkes et al. 1992 also point out an interesting parallel between the type of innovation in areas characterised by either technology push or demand pull. Guiding principles play an important part in both types of innovation, i.e. both in the further development of technical options and also in the development and formulation of social requirements and the problems to be resolved. 

The technology itself has advanced tremendously as substantial improvements in capability have led to greatly improved performance with increasingly tight process control. Many semiconductor processes used in manufacturing now have over ten CMP steps within them, this revolution in semiconductor technology has occurred because of demand pull. CMP based processes can be more powerful than those processes without CMP. 

It is important that policies for organic farming take the dynamic nature of the sector into account and make sure that there is a balanced application of supply/push and demand/pull measures by combining the key areas mentioned above in a manner adapted to the specific circumstances. In order to facilitate this it is recommended that member states develop action plans for organic farming which will then require periodic revision. It would be desirable if the EU could support the development of such action plans in the candidate countries. 

Even if embedded lead users contribute to organizational success, the phenomenon may not be equally important in each industry. I expect the phenomenon to exist in Industries that are rather market driven (lower technological complexity, demand pull Innovation) than technology driven (high technological performance, technology push innovation). 

Ogawa (2001) analyzed about demand pull supply chain in Japan. He pointed out that the demand pull supply chain changed the distribution system. 

If consumers only purchased their requirements in line with their use, then it would be relatively easy to reorganise the end-to-end supply chain from shelf to national warehouse using lean principles (see Chapter 6). A simple demand-pull system replenishing tomorrow that which has been sold today, direct to shelf, would streamline store operations and reduce inventories significantly. Retailers like Wal-Mart in the United States and Tesco in Britain have pursued an everyday low price policy in an attempt to maximise this steady state replenishment policy. However, in Europe, most retailers have found that customers enjoy promotions and that promotions boost sales. In any case, events like Christmas and back to school create huge surges in demand. 

Antonelli, Christiano, 1998, The Dynamics of Localized Technological Changes The Interaction Between Factor Costs Inducement, Demand Pull and Schumpeterian Rivalry, Economics of Innovation and New Technologies 6, 97-120. 

To put some context and granularity to this, below are examples of a demand pull and a supply push scenario for two different specialty crops. 

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