The Rise of Risk-Mitigating Technologies

You have said the global pandemic is forcing firms to rethink their innovation strategies. Why is that?

A major event like the pandemic changes consumers’ priorities, their preferences and their needs. As a result of COVID-19, people care a lot more about their safety and avoiding the spread of the virus. Understanding these new preferences and responding to the changes in consumer risk perception should be a priority for every organization as it designs and develops new products and services.

You have studied one type of innovation in particular. How do you define a ‘risk-mitigating technology’ (RMT)?

RMTs are technologies that reduce the probability of negative events or the severity of their consequences. For example, windshield wipers reduce the likelihood of car accidents, while seatbelts and airbags mitigate their severity. RMTs can take a wide variety of forms, depending on the nature of the hazard, the demand involved, and the technological possibilities.