Jaeho Kim, Phd Candidate, The Wharton School
Abstract: This study explores how firms’ search strategies shape innovation outcomes in the context of emerging general-purpose technologies (GPTs), with a focus on artificial intelligence (AI). GPTs, defined by their broad applicability and undefined market needs, challenge traditional search theories by requiring firms to balance advancing technological capabilities (supply-side innovation) with identifying practical use cases (demand-side innovation). Supply-side innovation drives the technological frontier but lacks alignment with market opportunities, leading to unrealized potential. In contrast, demand-side innovation addresses immediate market needs but can constrain scalability without a strong technological foundation. This research investigates how firms address these tradeoffs to sustain the technological performance of their knowledge within each search focus and achieve commercialization outcomes.