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The diffusion of netbooks exhibits many interesting traits of radical and disruptive innovation: the change in technical tradeoffs and product architecture (though not of core technology), the downsizing in performance (good enough for a new market), the inertia shown by incumbents.

We all know stories of radical innovation becoming disruptive because incumbent cannot change their competencies and embrace the upcoming technology. Maybe not any more, given the fluidity of modern markets for technology. In fact, one of the main players of the e-paper industry, PVI, is in fact a subsidiary of a major Taiwanese paper mill, and has pursued an interesting strategy of partnership and acquisition in order to transition to the new technology.

The article covers Netflix, whose CEO was named "Business person of the year" for 2010. Netflix is an interesting case study from the perspective of innovation. It has entered the DVD rental market with a business model innovation (i.e. sending DVDs to subscribers through the postal service) that disrupted incumbents such as Blockbuster. At the same time, it has realized that this innovation could be only transient, since the diffusion of broadband would have quickly led to the new paradigm of "on demand" or "streaming" content. So, it is a case of a disruptive innovator that is not afraid of rapidly disrupting the same business model on which it has built its own fortune.