Value system for distruptive innovation: evidence from LED lighting industry in Guangdong province, China

After reviewing the theory of disruptive innovation, this paper forms a new framework for analyzing disruptive innovation from the perspective of value system, which suggests that the technology per se is the value source, industrial Ecosystem is the carrier, business model is the instrument and the market trajectory is the terminal, through the coordination of the elements in the value system the success of firms in disruptive innovation could be obtained and sustained. In other words, with the understanding of how value system works in disruptive innovation, the failure of incumbent firms may hopefully find its root. According to the framework, it summarizes different types of disruption that LED brings to traditional lighting industry in Guangdong Province, and proposes policy recommendations to accelerate the development of LED lighting industry in Guangdong Province.