Market Constraints: Everybody Wants It Cheaper—and Faster and Better

The third kind of constraint I will consider at the industry level is the constraint represented by the market itself. We normally think of the market as consisting of only the clients and customers, but there is value in a broader definition that includes the product and service producers, along with other stakeholder groups, such as suppliers, regulators, standards associations, and society itself. When we think about markets, it is critical to recognize that different entities (especially customers) are likely to have values, interests, and incentives very different from those of the firms that address that market, and that these differences can represent significant innovation constraints.