Geroski curve

Geroski curve is an economic model developed by economist Paul Geroski that describes the evolution of industries through stages of innovation, competition, and consolidation. The model illustrates how industries typically begin with many firms experimenting with diverse designs, followed by the emergence of a dominant design, leading to market consolidation and increased market value for surviving firms. The Geroski curve is used to analyze industry dynamics in sectors such as technology, automotive, and pharmaceuticals.
Overview
The Geroski curve outlines three main stages of industry evolution:
Examples
The Geroski curve has been applied to various industries. In the smartphone market, the early 2000s saw many firms, including Nokia, BlackBerry, and Motorola, producing diverse mobile phone designs. The iPhone, introduced by Apple in 2007, established a dominant design with its touchscreen and app-based interface. By the 2010s, the number of vendors decreased, while Apple and a few competitors like Samsung dominated the market.

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