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Structural innovation

Improvements, as an example, in technology or processes, which have a major impact on a partial or entire value network, are called structural innovations. This type of innovation is being developed in the longer term than incremental innovation. One example is ethanol cars, which were developed in order to have less environmental impact. This affected the market by the fact that many chose to buy these cars (thanks in part to the environmental car premium that existed) but no total change in the market occurred. Compare incremental and disruptive innovation.

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