Market Selection Mechanism about Technological Innovation of IT Enterprises Based on the Technological Convergence

Abstract

There are two aspects in the growing demand of the converged-innovative products. The first is that the converged products substitute the original market demanding, and the second is of creating the new market demanding. Thus, based on redefining the concept of technological convergence, we analyze market demand of convergent products according to the characteristics of technological convergence in IT industry. We define market power as the function of product price and the improvement of performance of convergent product. We also assume that the original technology is symbiotic. Based on the above analysis, we modify the Bass Model and the hypotheses of related models, build a demand growth model of technological convergent products, and use this model to analyze and estimate the growing demand of converged products. At last, we discuss the condition that technological convergence will be successful.