Which type of innovation is noted for changing existing markets or creating new ones?

Disruptive innovation is recognized for its ability to change existing markets or create entirely new ones because it introduces products or services that initially underperform established standards and appeal to a niche market segment. Over time, these innovations improve and start to attract mainstream customers, thus reshaping the market landscape.

A notable example is how digital photography disrupted the traditional film photography market. Companies that focused solely on film struggled to compete with emerging digital technologies. Disruptive innovations often leverage new technologies to offer simpler, more convenient, and more affordable solutions compared to existing offerings, which can lead to significant shifts in consumer behavior and market dynamics.

In contrast, basic research is primarily concerned with gaining new knowledge without immediate commercial applications, and sustained innovation refers to incremental improvements made to existing products and services, enhancing their efficiency or quality. Breakthrough innovation typically refers to advancements that leap forward in technology and research, often resulting in significant breakthroughs but may not directly disrupt existing markets in the way disruptive innovation does.