ModelLife Electronics Inc.is a company that builds diagnostic devices.It was the first company to develop a compact MRI scanner by reconfiguring the components of the MRI technology.This smaller and user-friendly version of the huge MRI scanner created demand from small hospitals, nursing homes, and private practice doctors who were earlier dependent on the scanning machines in large hospitals.Which of the following types of innovations does this scenario best illustrate?

Question

Quizplus · Accepted Answer

This scenario best illustrates architectural innovation. Firms can innovate by leveraging existing technologies into new markets. An architectural innovation is a new product in which known components, based on existing technologies, are reconfigured in a novel way to create new markets.