The success of innovation seriously depends on externality effects. It originates in multiple forms such as (i) 3rd party complimentary goods and services, (ii) the advancement of needed infrastructure, (iii) the reduction of target customers’ information and experience gap, and (iv) compatibility standards, public policies and regulations. Innovators should focus on them so that their innovations keep leveraging these vital external factors.
For example, Apple kept an option of 3rd party app plugins in iPhone and promoted app stores–although reluctantly at the beginning; however, it played a significant role in the success of the iPhone. On the other hand, electric vehicles are facing charging or hydrogen refueling infrastructure barriers in rolling out.
