However, markets can change, especially over a longer period of time. A Mark II marked might change into a Mark I market whenever a major market discontinuity, such as the arrival of a new GPT, takes place. In a Mark I market, creative destruction takes place and new entrepreneurial firms are entering the market of the new technology. Larger firms, such as Philips, are often less dynamic and will have difficulties adjusting to this new scenario, which will lead to a major loss of market share. Because of this possible change from Mark II to Mark I, which is especially likely when a new GPT like nanotechnology is expected, it is important that Philips' healthcare division will stay on top of its toes. The company will have to largely invest in their R&D in the next 30 years or so in order to be able to keep their strong position in the market. Besides, different divisions can be created within the company that each focus on their own specialty. In this way there are many small dynamic firms within the larger corporation which will be better able to adjust.
Opportunities and Challenges .
To evaluate whether a new GPT in this scenario will really lead to a Mark I market where dynamic capabilities are very important, we will have to investigate the opportunity conditions, appropriability conditions, degrees of cumulativeness and the nature of knowledge in the future scenario. Due to the new technology, opportunities will be high. Barriers to entry are low because all the accumulated knowledge in other technologies is now redundant. The appropriability conditions are more difficult to assess, but when looking at the past 30 years, the patenting business has become a lot stronger. If we expect this trend to continue, appropriation opportunities will probably be strong in 2040. The nature of the knowledge in the development of nano-products will be tacit. Nanotechnology is highly complex and new theories will be mainly spread face-to-face within the Dutch cosmopolitan centre.
