Market uncertainty

Market uncertainty arises as during the early stages of a Technology life cycle, it is very difficult to establish clearly what customer needs are:

1. Firms are not quite sure what should go into the product.
2. Customers too may not know what they want in the product.
3. There is competition between the new and old technologies as well as between different designs using the new technology.
4. Product quality is low
5. Cost and prices are high, economies of scale and learning have yet to set in.
6. Market penetration is low and customers are largely lead users

Part of Early mover effects