SpaceX Hyperloop: a future technology disruption of the transportation system?

• Published in: Foresight (Cambridge) 2021-08, Vol.23 (5), p.528-543
• Main Authors: Harris, Wesley L., Wonglimpiyarat, Jarunee
• Format: Article
• Language: English
• Subjects: Business cycles; Chief executive officers; Commercial space industry; Commercialization; Disruption; Economic development; Economic growth; Economic models; Economics; Electric power; Electricity distribution; Financing; Innovations; Levitation; Paradigms; Product life cycle; Revolutions; S curves; Steam power; Technological change; Technology; Technology adoption; Textiles; Transportation industry; Transportation systems
• ISSN: 1463-6689; 1465-9832; 1463-6689
• DOI: 10.1108/FS-08-2020-0077

Purpose This paper aims to discuss the possibility that Hyperloop using air levitation technology would create a revolution in the future industry of transportation. It also analyses the financing dimension in bringing Hyperloop technology towards full-scale commercialisation. Design/methodology/approach The study uses a case study of SpaceX Hyperloop. The analyses if Hyperloop would bring about a paradigmatic shift in the transportation industry are based on the classical economic theories of technology S-curves (Utterback and Abernathy, 1975; Fisher and Pry, 1971) and Schumpeter’s model of economic development (Schumpeter, 1939, 1967). The three factors influencing a paradigmatic change (a shift in technoeconomic paradigm) according to Freeman and Perez (1988) are also explored. Findings The analyses of findings have shown that Hyperloop has not yet met three factors influencing a paradigmatic change. However, the Hyperloop technology has the potential to create a new market of mass transportation. In terms of technology financing, SpaceX needs the right financing infrastructure – corporate venture arm, the crowdfunding platform, initial coin offering, as well as debt and equity financing to accelerate the process of commercialisation. As the project moves forward, Hyperloop technology would create a market for itself (innovation to create the demand and not demand to create innovation).v Originality/value Although the body of literature on technology management is already voluminous, there has been a scarcity of past research devoted to elucidating the technology disruption and technology financing. This research study has applied the concepts of technology S-curves to better understand if SpaceX Hyperloop would bring about a paradigm shift or revolution in the future of the transportation industry. The research findings would help fill an identified knowledge gap in the body of research in technology disruption and financing.