Leapfrogging

The concept of leapfrogging was originally used in the context of economic growth theories and industrial-organization innovation studies with specific focus on competition among firms. It is based on Joseph Schumpeter's notion of ‘gales of creative destruction’. The hypothesis proposes that companies holding monopolies based on incumbent technologies have less incentive to innovate than potential rivals, and therefore they eventually lose their technological leadership role when new radical technological innovations are adopted by new firms which are ready to take the risks. When the radical innovations eventually become the new technological paradigm, the newcomer companies leapfrog ahead of former leading firms.