Understanding the System Dynamics of High-Technology Markets : Pólya Processes with Positive Feedback, Path Dependence and Lock-In

This paper relies on complexity theory to gain new insights into the
dynamics of high-technology markets. We are making use of the Pólya process model to explain these dynamics. This classical model highlights the "mechanism" of positive feedback, which gives rise to the phenomenon of path dependence and lock-in. Implications for management in high-technology markets are derived. Finally, some recommendations for the design of business innovations are given.