What is disruptive innovation?
Disruptive innovation occurs when a new product or process shakes up the status quo. The invention makes goods and services more affordable and accessible. And that combination drives sales.
Customers switch from rival products or become first-time users. You might even see a startup leapfrog older companies that had felt safe and dominant.
Business school professor Clayton Christensen coined the term in 1995. His model involved companies starting out by targeting less profitable parts of the market ignored by incumbents.
But people now use the phrase more broadly. And it’s common to hear talk of world-changing companies like Google, Tesla, Moderna and Netflix pioneering disruptive innovation.
You can also see signs of it in other lesser-known companies we invest in, whether they’re using gene-editing technologies to create new cures or finding clever uses of AI to drive ecommerce.
Find out more about future disruptors and some of the innovations they’re developing in the articles below.
Baillie Gifford Disruption Week
In October 2021 Baillie Gifford hosted Disruption Week, in which four of our investment managers explored sectors at the forefront of change: biotech, digital payments, transport and sustainable food.
You can read and watch the sessions via the links above, or get access to the transcripts and recordings below.
The Biological Revolution
With Rose Nguyen
A convergence of technologies is letting biotech firms disrupt how drugs and vaccines are made.Digital Payments Platforms
With Gemma Barkhuizen
New types of transactions and ecommerce services are being enabled by innovative fintechs.The Future of Mobility
With Thaiha Nguyen
From battery-powered cars to flying taxis, life on the move is set to change.Sustainable Food and Agriculture
With Lee Qian
Vertical farms, plant-based proteins and smart tractors could disrupt what you eat and drink.