Non-Market Forces Facing GPS Technology

A major non-market force often is through some sort of government intervention.  Although, in the case of GPS consumer technology that does not seem to be an impacting force thus far.

With any technology used in vehicles however there is always the discussion of whether these new innovations will serve as a distraction to drivers.  With the increased number of auto accidents caused by the use of cell phones, there may be an increase in concerns that GPS and navigation systems may have the same affect.  This factor may cause newer innovations of GPS systems to focus more on creating ways that are less distracting to the driver but still allow for the maximum performance.  More hands-free technology or units that use vocal commands entirely may be a result of such non-market forces.  In addition restrictions may be placed on what GPS systems will be capable of to counter their potential harm.

In terms of motivation and ability as non-market factors discussed in the final chapter of Christensen’s book (How Nonmarket Factors Affect Innovation), the GPS market still serves as a “hotbed” for innovation.  There is still much motivation to improve existing products suggested by the fact that the market continues to grow.  Also the prices of GPS systems whether in-car or hand-held still remain fairly high.  This would suggest that the demand for GPS systems is still high.  With high revenues still coming to GPS producers, they in-turn have the financial resources and ability to further improve their products.

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