Abstract:
This study is intended to elaborate the disruptive innovations. Furthermore, this study try to explain the benefit and cost of disruptive innovations, as well as the role of regulation in that context. Data analysis method used is descriptive qualitative analysis. Descriptive modeling approach provides an easy understanding. The study concludes that in an economy, especially for developing country like Indonesian economy, a disruptive innovation is a necessity. It can not be prevented and prohibited. The prohibition of innovation will actually inhibit the creativity. On the other hand, the transition period needs to be well mediated so that the conflicts of interest can be minimized. It takes the role of government in regulating and stabilizing the effect of disruptive innovation.
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