Discussion, Limitations and Further Research

In this chapter I shall summarise the hypotheses presented in this thesis and criiti-cally discuss the validity of the concept of lead markets. Lead markets were defined as regional markets that are characterised by market-specific attributes which support the innovation design that is adopted in the domestic market to become the globally dominant design. In order to do so lead market designs have to substitute other designs that might be or would have been initially preferred by users in other countries. 

The lead market hypothesis is based on the three assumptions 

The conclusion from these hypotheses for technology management is that for a multinational firm it is important to gear new products or process development towards the lead market context provided a lead market exists. If it is possible that there is a lead market, knowledge of lead market characteristics of regional mar- 

Lead markets are not just an opportunity for multinational firms, they are also a threat to a firm s competitive position. Firms that do not participate in lead markets, but respond to the demand in other markets either see the commercialisation of their innovations hampered or risk committing themselves to idiosyncratic demand and locking-in to a technology which is well received in the domestic market, but will not succeed worldwide. 

The market failure hypothesis, which is based on seemingly inferior designs that became dominant, has been challenged, see for instance Utterback s review of the disputed inferiority of the typewriter keyboard (Utterback 1994, pp. 5-7). 

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