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Technology Trajectory in Aviation: Innovations leading toValue Creation (2000-2019)
Author
Pereira, Bruno Alencar, Lohmann, Gui, Houghton, Luke
Published
2022
Journal Title
International Journal of Innovation Studies
Version
Accepted Manuscript (AM)
DOI
https://doi.org/10.1016/j.ijis.2022.05.001
Copyright Statement
© The Author(s) 2022. This article is an open access article distributed under the terms andconditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium,provided the original work is properly cited.
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Journal Pre-proof
Technology Trajectory in Aviation: Innovations leading to Value Creation (2000-2019)
Bruno Alencar Pereira, Gui Lohmann, Luke Houghton
PII: S2096-2487(22)00024-8
DOI: https://doi.org/10.1016/j.ijis.2022.05.001
Reference: IJIS 65
To appear in: International Journal of Innovation Studies
Received Date: 18 February 2022
Revised Date: 4 May 2022
Accepted Date: 6 May 2022
Please cite this article as: Pereira B.A., Lohmann G. & Houghton L., Technology Trajectory in Aviation:Innovations leading to Value Creation (2000-2019), International Journal of Innovation Studies, https://doi.org/10.1016/j.ijis.2022.05.001.
This is a PDF file of an article that has undergone enhancements after acceptance, such as the additionof a cover page and metadata, and formatting for readability, but it is not yet the definitive version ofrecord. This version will undergo additional copyediting, typesetting and review before it is publishedin its final form, but we are providing this version to give early visibility of the article. Please note that,during the production process, errors may be discovered which could affect the content, and all legaldisclaimers that apply to the journal pertain.
© 2022 China Science Publishing & Media Ltd. Publishing services by Elsevier B.V. on behalf of KeAiCommunications Co. Ltd.
TITLE PAGE
Technology Trajectory in Aviation: Innovations leading to Value Creation (2000-2019)
Bruno Alencar Pereira Griffith University, School of Engineering and Built Environment, 170 Kessels Road, Brisbane, QLD 4111, Australia
e-mail: [email protected]
Gui Lohmann Griffith University, School of Engineering and Built Environment, 170 Kessels Road, Brisbane, QLD 4111, Australia
e-mail: [email protected]
Luke Houghton (Corresponding author) Griffith University, Department of Business Strategy and Innovation, 170 Kessels Road, Brisbane, QLD 4111, Australia
e-mail: [email protected]
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Technology Trajectory in Aviation: Innovations leading to Value Creation (2000-2019)
Abstract
This study identifies relevant innovations and discusses value creation in the aviation industry
between 2000 and 2019. Aviation experts with experience in innovation were selected and
invited to complete a survey identifying the leading innovations in the industry. This study
contributes to recent aviation history by offering a list of innovations and a discussion of
technological path dependency and value proposition with examples. This overview is helpful
to academics and practitioners to verify how these innovations have shaped the industry
worldwide, making it more efficient, agile, sustainable, and safe. The innovations selected
comprise consolidated technologies and emerging advances introduced in the timeframe
proposed. 33 innovations primarily related to incremental and technical typologies that add
value to products were mapped. In addition, this study provides insightful findings by
classifying the value created for the aviation sector into five innovation clusters: (1) aircraft
technology, adding value in terms of efficiency and sustainability; (2) innovation in
passenger services, creating more personalized services and enhancing the customer
experience; (3) innovation in flying, adding value in terms of safety and the security
environment; (4) business and operational management, improving procedures and revenue;
(5) and general applications, adding value in terms of Aviation 4.0 (increases in automation
and data exchange, including cyber-physical systems, the Internet of Things(IOT) and cloud
computing).
Keywords: Aviation; Air transport; Innovation; Value creation; Technology.
1. Introduction
The aviation sector has benefited from technological innovations that have contributed
to its relevance to the world economy and enabler of other industries (Zhu et al., 2012;
Klimas, 2014; Hjalager, 2015; Dimitrios and Maria, 2018). The aviation industry is
technology-driven. As a result, innovations will always be a key driver for the sector and its
thriving supply chain, in which technologies are consistently being deployed and researched
to continuously increase performance (Halder, 2013; Mrazova, 2013). Innovation affects both
the demand and supply sides of any business by helping industries maintain their competitive
edge (Lee and Mo, 2011; Nicolau and Santa-María, 2012; Halder, 2013). In the aviation
industry, innovation is critical for improving efficiency and operational capabilities and for
creating value through improvements in air traffic control, advanced materials, more
sustainable fuels, energy storage, conversion into digital systems,and mitigation of
environmental concerns, all of which provide new opportunities to advance the sector
(Tinoco and Johnson, 2010; Liu et al., 2017).
The definition of innovation relates to improvements, new developments or new use in
products, services, processes, and marketing that propose a new or additional value to the
business and customers (Oke, 2007; Emery, 2010; Kurt et al., 2013; Niine et al., 2015;
OECD, 2018). Innovation is a source of value created through inventing, developing,
producing, and delivering new market offerings (Schumpeter and Opie, 1934; Amit and Zott,
2001). This process involves dimensions beyond the conventional economic perspective, and
it includes social and environmental elements (Shenhar et al., 2001; Chesbrough et al., 2018;
Pargar et al., 2019).
Few studies on innovation have been based on empirical cases relating to innovative
companies in specific contexts (Kamel, 2006). However, this perspective can help various
sectors identify best practices and guidelines for creating and capturing value through
innovations. For this reason, we intend to address questions about what innovations have
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been fostered and how they create value in the context of the aviation sector. This study aims
to identify relevant innovations creating value for airlines, airports, aircraft design,and
manufacturing across the civil aviation value chain.
By requesting input from aviation experts from different parts of the world, this study
makes theoretical and managerial contributions by providing a comprehensive list of
innovations adopted and developed by aviation organizations. However, the intention is not
to provide a deepen discussion on why, when they became consolidated, or even to measure
the impact level of the value created in the sector. The purpose of this analysis is to identify
these innovations as historical contributions and to better understand how the sector creates
value by fostering technology, enabling the industry to solve current and future challenges.
Following this introductory section, we provide a rationale regarding innovation and
value creation in the context of aviation. Then, we present clusters of innovations and discuss
their primary value. Finally, we provide a discussion and an overview of the findings,
highlighting perspectives on recent advances and contributions to future research.
2. Literature review: Innovation and value creation
Innovation is critical for companies to achieve success and is a primary source of
sustainable competitive advantage (Kamel, 2006; Halder, 2013). However, to foster
innovation and reap benefits, organizations need to adopt a set of activities and capabilities
involving a new mindset, strategy, process, and outcomes (Gemici and Alpkan, 2015; Kahn,
2018). In other words, to create ‘value’, innovations are required, even despite their inherent
risks. A change in the mindset of an organization leads to better awareness and paradigm
innovation. More specifically, having a strategic mindset improves the understanding and
perceptions of the obstacles inherent to adopting new solutions (Ucler and Gok, 2015; Dodd
et al., 2018).
Innovation strategy is considered a critical element of corporate strategy since it
determines where, when, and what type of innovation needs to be implemented (Gemici and
Alpkan, 2015). To maintain a leading innovation strategy, it is crucial to observe markets,
technology paths and organizational processes. Innovation strategy may involve reshaping
the business ecosystem rather than coping with competition (Porter and Van der Linde, 1995;
Tidd et al., 2005). The innovation process consists of decisions, activities, and impacts from
recognizing and meeting a need or solving a problem, research, development, diffusion, and
adoption by users (Rogers, 1962; Wonglimpiyarat and Yuberk, 2005; Vagnani and Volpe,
2017). In a particular type of innovation outcome, this process may be unique, complex, and
uncertain (Wonglimpiyarat and Yuberk, 2005; Matthews, 2000; Halder, 2013; Kurt et al.,
2013; Mousavi and Bossink, 2017).
Innovation outcomes are widely discussed in the literature and are differentiated into
two main types: ‘radical’ or ‘incremental,’ depending on the intensity or level of
innovativeness. Radical or disruptive innovation involves products, services, or approaches
that transform existing markets or create new ones by trading off raw performance for the
sake of simplicity, convenience, affordability, and accessibility (Oke, 2007; Kurt et al., 2013;
Gemici and Alpkan, 2015; Niine et al., 2015; OECD, 2018). Incremental innovations can be
defined as products, services, organizational and marketing improvements that provide new
features or new benefits to existing technology or solutions in the current market (Garcia and
Calantone, 2002; Oke, 2007; Kurt et al., 2013; OECD, 2018). The micro perspective defines
innovativeness as new to the firm or new to the customer, adding values, benefits, or
changing patterns (Cubero et al., 2021). Moreover, different innovation outcomes create
diverse value propositions from organizational and customer perspectives.
Value creation has been thoroughly analyzed in management research and literature on
benefits, value, performance, and success (Laursen and Svejvig, 2016). The meaning of value
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and its creation process are rapidly shifting from a product-, service- and firm-centric view to
personalized consumer experiences occurring inside the firm and outside markets (Prahalad
and Ramaswamy, 2004; Chesbrough et al., 2018). Value is also created when innovation
emerges from social demand and achieves differentiation, creating superior value (Husted et
al., 2015). Greater value creation depends on a firm’s ability to innovate successfully.
However, it often does not stand alone; rather, its success depends on other factors
accompanying changes in a firm’s environment (Adner and Kapoor, 2010; Gemici and
Alpkan, 2015). Drivers of innovation involve the firm’s policy choices, linkages, timing,
location, sharing of activities among business units and stakeholders, collaboration, learning,
integration, scale, and institutional mindset (Porter, 1985). Therefore, to enhance innovation
and value creation, firms need to connect to these innovation drivers to provide a more
comprehensive and enticing variety of goods and services than the current needs or desires
their customers have, in addition to supporting stakeholders’ perspectives and the
organization itself (Johannessen and Olsen, 2010).
Value creation has become a complex and multidirectional concept involving
multifaceted perspectives, taking into consideration the micro-level (customers and groups),
meso-level (organizations) and the macro-level (stakeholders and supply chain networks)
(Lepak et al., 2007; Corte and Gaudio; 2014; Laursen and Svejvig, 2016). Due to these
different contexts, the inherent potential of innovation needs to be unleashed, managed and
materialized in a target-oriented manner to achieve tangible results (Franke, 2007). The
process of value creation is cofounded by those who create value and those who capture
value, in which customers are arbiters of value. Customers are fundamental to successful
innovation diffusion, which leads to sustained high performance and profitability (Porter,
1985; Priem, 2007; Chatain and Zemsky, 2011; Laursen and Svejvig, 2016).
From the organizational perspective, value creation relates to new types of production
processes, activities, outcomes, benefits, differentiation, competitive advantage, profitability,
and long-term success through sustainable development (Adams, 2017; Barker and Chiu,
2018). In terms of the perspectives of stakeholders and supply chains, firms are part of
ecosystems that influence the quality and scope of the development of innovation activities,
and thus, their ability to co-create innovations enables them to share value by exchanging
knowledge with one or more parties in return for compensation (De Faria et al., 2010;
Chesbrough et al., 2018; Havemo, 2018).
Airlines, airports, and civil aviation chains can foster innovation as a source of value
creation to obtain financial benefits via technological performance improvements,
complementary assets, a reduction in environmental impacts, and the offer of additional value
to passengers (Grampella et al., 2017; Kim et al., 2019). Additionally, innovations create
value because of an urgent need for new sustainable developments, more personalized
services, creating a safer and more secure environment. Prior studies on air transport
innovation have been based on technical approaches (Tinoco and Johnson, 2010; Lee and
Mo, 2011). Moreover, despite the acknowledged importance of innovation in reducing
aviation macro problems, little is known about how these advances shape the sector to change
the industry towards a more sustainable paradigm (Lee and Mo, 2011; Grampella et al.,
2017). In this context, this research is valuable because of the importance of leading
innovations in products, services, and processes in the aviation sector; few previous studies
have provided a clear and precise description of how to successfully conduct innovation
adoption to create value (Chen and Chen, 2010).
The following sections outline the methods used in this study, the description of
innovations within the airline industry and how they have added value. The study concludes
with directions for further research that could shed light on how value is created in this
sector.
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3. Material and methods
This study compiles innovations highlighted by international experts who have
experience in innovation and aviation. According to Weir et al. (2006), typically, a panel is
composed of individuals who are knowledgeable about the subject under consideration, who
can represent the views of their peers, and who are motivated to participate. The selection
criteria for the participants included academics and practitioners with professional
backgrounds in innovation or research and development (R&D) in the aviation sector and at
least five years of experience. The work experience, academic background, and activities
related to the research topic were observed in their LinkedIn profile. In terms of recruitment,
the participants were identified and invited using the search function on LinkedIn, a leading
social media resource for businesspeople. In addition, we applied the snowball strategy,
asking participants to indicate other potential respondents. To carry out a precise search on
LinkedIn, we included the Boolean terms “innovation” AND “aviation” OR “air transport” in
the search tool. The online survey was created using the software LimeSurvey (v. 2.59). The
survey used three open questions involving innovation descriptors relevant to the aviation
sector, examples, and practical implications for adding value as follows:
1. What name would you give to the innovation you have selected?
2. Please, provide a comprehensive description of the innovation you have identified.
3. Please, provide examples to show how the innovation has added value to the
aviation sector.
The survey was designed to take no more than 15 minutes to complete. We invited each
expert to identify three critical innovations developed during the 20-year period between 2000 and 2019 that added significant value for airlines, airports, aircraft performance, and civil aviation in general, excluding the defense and aerospace industries. The survey was applied from February to May 2020. Initially, the sample or potential list was composed of approximately 200 experts who met the selection criteria. The primary means of contact was via a connection request on LinkedIn, including a brief note introducing the authors and the research project while at the same time inviting them to participate in the survey. A total of 134 experts accepted the connection, with two experts declining to participate because they worked in areas restricted to the defense field. Including the snowball contacts from the survey, 156 experts received the link to participate in the survey. The survey form was completed by 30 experts, resulting in a response rate of 19.23 percent. A total of 74 innovations were identified and numbered. Following this step, the innovations identified were exported to an Excel spreadsheet. Subsequently, the innovations were analyzed to integrate similarities by merging when appropriate and by deleting overlaps or redundancies (Shi and Lai, 2019) (Table 1).
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Table 1
74 Innovations indicated by experts and clusters categories (2000-2019). ID# expert
ID# innovation
Name of innovation Innovations merged Cluster Subcluster Themes
2 4 Sharklets and new winglet shapes
Sharklets and new winglet shapes of aircraft wings Aircraft technology Aircraft design Fuel
12 32 Winglets
2 5
Sustainable fuels
Sustainable Aviation Fuel (SAF)
Aircraft technology Engine Fuel 11 29 Sustainable aviation
15 41 Innovations in fuel
2 6 Electric Vertical Take-Off and Landing (eVTOL)
Air Taxis Aircraft technology Engine
Mobility and emissions 29 71 eVTOL
4 10 Unmanned aircraft
Commercially Viable Unmanned Aircraft Systems (UAS) Aircraft technology Aircraft design General use
17 46 Drones
4 11 Electric aircraft
Electrification Aircraft technology Engine Batteries and fuel
12 34 Electric/hybrid-electric aircraft
5 14
New long-range aircraft
Long-range aircraft
Aircraft technology Aircraft design New aircrafts 11 31 Airbus 350 and Boeing 787
22 58 Emergence of new generation aircraft - especially ultra-long range
6 17
New composite and advanced materials
Composite airframes
Aircraft technology Aircraft design Aircraft manufacturing
7 19 Advanced materials in aircraft design to reduce weight
16 45 Material selection
8 23
New engines
Geared engines
Aircraft technology Engine Engines manufacturing
17 48 Engines
16 43 Engine design
15 40 Technology aircraft design (e.g., fuselage, engines, avionics)
Technology pertaining to aircraft design involving fuselage, engines, and electric devices
Aircraft technology Aircraft design Aircraft manufacturing
16 44 Glass cockpits Glass cockpits Aircraft technology Aircraft design Cabin improvement
23 59 Pulse oxygen conservation Pulse oxygen conservation Aircraft technology Aircraft design Oxygen efficiency
23 60 Grey water toilet systems Grey water toilet systems Aircraft technology Aircraft design Water efficiency
27 67 Compact Fusion Reactor (CFR) CFR by Lockheed Martin Aircraft technology Engine Fuel consumption
28 68 Light Detection and Ranging (LiDAR)
LiDAR Aircraft technology Aircraft design Distance and terrain sensing
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1 2
Self-service bag and drop services
Self-service bag drop and check-in
Innovation in passenger services
Seamless passenger journey
Bag-drop processes 3 8
Development and introduction of common use self bag drops
25 65 Individual Carrier System (ICS) for conveying, storing and sorting baggage
1 3 Automated immigration clearance and e-passports
Automated immigration clearance Innovation in passenger service
Seamless passenger journey
Immigration system 24 64 E-passports
3 7
Biometric technologies
Introduction of facial biometric cameras
Innovation in passenger service
Seamless passenger journey
General use 14 39 Biometrics
15 42 Biometric devices
19 52 Biometric technology
3 9 Wave passenger process Wave passenger process Innovation in passenger service
Seamless passenger journey
Mobility
6 16
E-ticket
E-Commerce (e-ticketing) Innovation in passenger service
Seamless passenger journey
Ticket and boarding 8 24 E-ticket
24 62 E-tickets
12 33 Inflight Experience (IFE)
IFE and internet-connected cabins Innovation in passenger service
Passenger experience
Entertainment inflight 21 55
Inflight entertainment and connectivity systems
13 35
Self-service technologies and smart mobile
Self-service mobile applications (reservation, check-in, and boarding)
Innovation in passenger service
Seamless passenger journey
Ticket and boarding 14 37 Self-service applications
20 53 User-friendly digitalization
24 63 Automated check-in at airports
28 69 The super flyer passenger
Seamless journey 14 38 Mobile general usage
11 30 Advancement of digital technologies
4 12
Air traffic management technologies
Trajectory Based Optimization (TBO)/4D traffic management
Innovation in flying
Traffic management
Air traffic routing
7 20 Air traffic management technologies Innovation in flying Ground operations and capacity-demand
9 27 Automatic Dependent Surveillance-Broadcast (ADS-B)
Innovation in flying Aircraft movement and risk management
5 13 High fidelity flight simulation New training methods and high-fidelity flight simulation
Innovation in flying Flight training Flight training
9 25 New revenue management systems Artificial intelligence (AI) for revenue Business and operational Management Predict flight price
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management management systems
13 36 Revenue management systems Pricing segmentation
9 26 Global Distribution System (GDS) GDS systems Operators connection
50 56 E-commerce E-commerce Business and operational management
Management systems
Sales processes
10 28 Product and ancillary segmentation Product and ancillary segmentation Business and operational management
Business model General use
20 54
Low-cost business model
Low-cost business model Business and operational management
Business model Business model 22 57
Low-cost carriers and shift in selling ancillaries
17 47 Airport human tracking systems Airport human tracking Business and operational management
Ground services and operations
Passengers’ movement tracking
19 50 Predictive maintenance Predictive maintenance Business and operational management
Ground services and operations
Predictive tools
26 66 Automated Guided Vehicles and Robotics for Ground Services (AGVs)
Automated Guided Vehicles for Ground Services Business and operational
management
Ground services and operations
Ground operations 30 74 Autonomous Vehicles (AV)
1 1 Airport Collaborative Decision Making (A-CDM)
A-CDM Business and operational management
Management systems
Shared operational information
28 70 Digital twin technology Digital twin technology General application General application
Predictions, design and development, certification, and operations
23 18 Digitization Digitization General application General application
Digitization of information.
6 21 New security and safety technologies
New Security & Safety Technologies General application General application
Safety and security
19 61 Virtual and augmented reality
Augmented Reality Glasses General application
General application
General application 30 51 Virtual and Augmented reality
5 73 New applications based on Artificial Intelligence (AI)
AI General application
General application
General application 7 15 Artificial intelligence
8 22 Data analytics and Big Data Data Analytics General application General application
General application
18 49 Model Systems Based Engineering Model-Based Systems Engineering General application
General application
General application 30 72 IoT IoT
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To check the innovations in the timeframe proposed (2000-2019), we conducted a
documentary search of papers, news, websites, reports, and patents to investigate their
trajectories and historical adoption in the context of the aviation sector. By checking the
innovation trajectories, we disregarded seven innovations that were outside the timeframe
proposed; these innovations and their respective ID numbers are given as follows:
• Technology aircraft design (e.g., fuselage, engines, avionics) (#40) - this set of
innovations has developed since the introduction of previous aircrafts such as the
Boeing 777 in 1993 (Zhou, 2013);
• Compact Fusion Reactor - CFR (#67) - the development started in approximately
2014, but with provision to be launched in 2024 (IFR Magazine, 2014; Lockheed
Martin, n.d.);
• E-ticketing (#16, #24, #62) - United Airlines pioneered flying without printed
boarding passes, offering electronic tickets for the first time in 1994 (Abeyratne,
2005);
• Global Distribution System - GDS (#26) - Sabre was the first GDS provider to
realize the potential of the internet, launching Travelocity in early 1996 (Vinod and
Moore, 2009);
• E-commerce (#56) - In 1995, SITA’s software partner company made e-commerce
history with the launch of the first website able to complete travel bookings and
take payments in real-time via the internet. The website was called “Cyberseat”
and was developed by British Midland (Taneja, 2017);
• Low-cost business model (#54, #57) - the concept of the low-cost firm was
developed for the first time in the US airline industry by Pacific Southwest and,
subsequently, Southwest Airlines in 1971 (Dobruszkes, 2006; Maxim, 2012);
• Digitization (#18) - since 1991, pilots have used Hewlett Packard Omnibook. The
earliest electronic flight bag precursors were individual pilots’ use of laptops and
standard software in the early 1990s (Hanson, 2002; WorkDisk, 2019).
The selected innovations were categorized into five innovation clusters. These clusters
were created a posteriori to aggregate groups of innovations into specific aviation fields. We
created five innovation clusters by analyzing the use, context, and application of the
innovations in the aviation sector, including aircraft technology; innovation in passenger
services; innovation in flying; business and operational management; and general
applications. Following these steps, we collected 33 innovations, which are discussed in the
next section. In addition, we indicated appropriate directions in which the innovation clusters
create value.
4. Results: The pool of innovations and value creation in the aviation sector
Fig. 1 synthesizes the 33 innovations into clusters and subclusters and identifies the
direction of the value creation in the aviation sector. We indicate the ID number created for
each innovation in parentheses, with similar innovations merged into a unique solution when
necessary.
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Fig. 1. The pool of 33 innovations and main value creation in the aviation sector (2000-2019).
Following Figure 1, we provide the path trajectory for each aviation industry innovation, with a notable event and the primary value
created (Table 2). To give an accurate trajectory and year of introduction related to these innovations, we cite two different sources.
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Table 2. Innovations, notable events and the value created in the aviation sector (2000-2019).
Cluster Innovation Introduction year
Notable event Value created 2000 ----------------2019
1.
Aircraft
technology
Gray water toilet systems
(#60) Patent No. 6143185 was issued in the US on Nov. 7, 2000
(Tracy, 2000; Free patents, 2000).
Reduced the amount of water required to be carried by aircraft,
reducing fuel burn.
Glass cockpits (#44)
Glass cockpits, or electronic flight instrument systems,
began appearing in general aviation airplanes (Seedhouse
et al., 2019; MidContinent, 2020).
This digital technology replaced analogic flight instruments
improving efficiencies in cabin and safety (Seedhouse et al.,
2019).
Unmanned aircraft
(UA)(#10, #46)
The Federal Aviation Administration in US (FAA) issued
the first commercial drone permits (Dormehl, 2018; Drone
Ethusiast, n.d.).
Promoted significant progress in travel mobility, high-capacity
batteries, and energy-efficient motors, reducing operational
expenses with the benefits of electrification.
New composite and
advanced materials (#17,
#19, #45)
Boeing 787 was the first commercial airliner with 50% of
the structure made up of composite (Design News, 2007;
Wilhelmsen and Ostrom, 2016).
Reduced weight and, therefore, costs (capital and operating
cost) previously dominated by metal material.
Sustainable fuels (#5, #29,
#41)
For the first time, Virgin Atlantic used biofuel made of
coconut oil in a flight (Biello, 2008; Yilmaz and Atmanli,
2017).
Reduced emissions of carbon dioxide (CO2), fuel
consumption, noise emissions and improved operations in
populated areas or in traffic-capped airports.
Sharklets and new winglet
shapes (#4, #32) A new wingtip design for the Airbus A320 family was
launched (Prasad, 2012; The flying engineer, 2013).
Enabled to airlines to save fuel, making flights more feasible
from an operational and economic perspective, still enabling a
better aircraft aerodynamic and the overall lift-drag ratio.
New long-range aircrafts
(#14, #31, #58) A new era for long-range aircraft began with the Boeing
787 Dreamliner (Rigby, 2009; Giurgiutiu, 2015).
Enabled longer-range trips shrinking distances, more comfort,
and lower fuel burn/cost; creating the possibility for worldwide
mass tourism (Lohmann and Pereira, 2019).
Electric aircraft (#11, #34) European manufacturer Pipistrel introduced the Alpha
Electro model to the market (Horne, 2015; Eyre, 2019).
This emerging innovation in aircraft is based on electric
motors, which are much simpler than complex internal
combustion engines, requiring less downtime for maintenance
and reducing operating costs and emissions.
Pulse oxygen conservation
(#59)
A final rule replaced the existing process by which the
FAA approves portable oxygen concentrators (POC)
(Federal Register, 2016; Federal Aviation Administration
[FAA], 2019).
Reduced the amount of emergency oxygen carried by only
flowing oxygen when it can be efficiently used by the user.
New engines (#23, #48,
#43) Geared Turbofan (GTF) entered service (Pratt and
Whitney, 2018; Thompson, 2018).
Promoted greater efficiency of commercial air transportation,
making it more attractive in terms of travel cost over time
(Peters et al., 2014). In addition, reduced nitrogen oxide
emissions by up to 50 percent of the regulatory standard
(Thompson, 2018).
Electric Vertical Take-Off
and Landing (eVTOL) (#6,
#71)
Volocopter successfully tested an autonomous flying taxi
in Dubai (Volocopter, 2018; Blau, 2020).
Like UAs, eVTOL provided relevant progress in travel
mobility, high-capacity batteries, and energy-efficient motors,
reducing operational expenses with the benefits of
electrification.
Light Detection and
Ranging (LiDAR) (#68) Boeing used the LiDAR system in the industry for the first
time to detect clear air turbulence (Bellamy III, 2018; New
Improved the detection of clear air turbulence, such as the
presence of microburst, volcanic ash, and wake vortex
2000
2003
2006
2007
2008
2009
2010
2016
2017
2018
2016
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Desk, 2018). turbulence, reducing the risk of accidents.
2. Innovation
in passenger
services
Biometric technologies (#7,
#39, #42, #52)
McLean-based EyeTicket Corporation began a pilot
program with US Airways at Charlotte-Douglas airport
(Washington Times, 2000; Photonics, 2001).
Enabled travelers to undergo verification using face,
fingerprint, and iris recognition or a combination of modalities;
allowing passengers to speed through queues and easing
connections to flights.
Inflight Experience (IFE)
(#33, #55)
Onboard WiFi access for passengers took IFEs to the next
level when Boeing unveiled the Connexion program
(Garcia, 2017; Wilson, 2017).
Provided better entertainment for passenger cabins; WiFi
improved device connections and streaming services onboard.
Automated immigration
clearance and e-passports
(#3, #64)
The US-VISIT program began capturing fingerprints and
facial images of visitors at their borders. The International
Civil Aviation Organization (ICAO) published the first
version of the e-Passport (Accenture, 2009; Vakalis, 2011).
Products such as automated border control systems (ABC) or
eGates enabled friendly self-service processes using biometric
passports to verify passengers’ identities (Accenture, 2009;
Vakalis, 2011).
Self-service bag and drop
services (#2, #8, #65)
Amsterdam Airport Schiphol started to use a self-service
bag drop process (Future Travel Experience [FTE], 2011;
Schiphol, 2012).
Enabled passengers to better manage their luggage, gaining
time for urgent procedures in airports (Gao and Yang, 2013).
Self-service technologies
and mobile applications
(#30, #35, #37, #38, #53,
#63, #69)
Pioneer airports adopted mobile internet services, Dallas
Fort Worth airport in the US introduced its first mobile
website, and Aéroports de Paris in France introduced its
first iPhone app (Martin-Domingo and Martín, 2016;
Graham, 2018).
Streamlined the airport experience and seamless processes
with the promotion and application of common-use self-
service platforms and mobile applications.
Wave passenger processes
(#9)
Aéroports de Paris introduced the ‘My Way’ smartphone
application; Copenhagen Airport introduced an app
featuring ‘augmented reality’ for passenger flow forecast;
and Frankfurt Airport introduced the GORDIO
AIRPORTS™ system (Airport Business, 2011, 2013).
Leveraged the concept of smart airports giving passengers a
sense of control over the travel process through the adoption of
mobile internet services, kiosks, automated gates, and internet
to complete a trip (Halder, 2013; Martin-Domingo and Martín,
2016; Graham, 2018).
3. Innovation
in flying
Air traffic management
technologies (#12, #20, #27)
New technologies were created by The Single European
Sky ATM Research Program (SESAR) in Europe and
NexGen in the US (US Department of Transportation,
2004; Skybrary, n.d.).
Provided a holistic view of air transport processes in the field
of trajectories management, integrating ground phase at the
airport and capacity-demand balance.
High-fidelity flight
simulation (#13)
The first full flight simulator with high-fidelity electrical
motion was launched by FlightSafety International and
certificated by the FAA (Flight Safety 2016; New, 2018).
Contributed to faster pathways for airlines to develop and train
pilots with a significant cost reduction and improving
standards in-flight procedures.
4.
Business and
operational
management
Automated Guided Vehicles
and Robotics for Ground
Services (AGVs) (#66, #74)
Engineers developed and patented methods for AGVs that
can change the path, making lifting, lowering, and
transferring loads safer and more accessible (Dutra and
Lengerke, 2011; Automated Guided Vehicles, 2020).
Increased productivity and costs require a smaller operational
workforce and enable precise guidance and control of vehicles
reducing accidents and the use of multiple types of equipment
(Dutra and Lengerke, 2011).
Product and ancillary
segmentation (#28)
Air New Zealand first introduced branded fare families
based on segmentation (Vinod and More, 2009; Vinod et
al., 2018).
Enabled sophisticated segmentation in pricing, delivery, and
bundling or unbundling of ancillary products allowing airlines
to add value tailored to a diverse range of customers and to
unlock complementary revenues as a significant driver of
profitability (Vinod and More, 2009; Vinod et al., 2018).
Airport Collaborative A-CDM was initially deployed at Brussels Airport to Enhanced the efficiency and resilience of airport operations
2000
2000
2004
2008
2009
2011
2004
2006
2003
2004
2010
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Decision Making (A-CDM)
(#1)
Improve operational efficiency in partnership with
Eurocontrol, Airports Council International (ACI) and The
International Air Transport Association (IATA)
(Eurocontrol, 2016; Zheng et al., 2019).
by optimising the use of resources and improving the
predictability of air traffic (Eurocontrol, 2016; Zheng et al.,
2019).
New revenue management
systems (#25)
EasyJet applied AI and data science to its revenue
management system to set fares by responding to passenger
demand (Powley, 2015; Corominas, 2016).
Significantly impacted airline markets to predict and correct
airfare elasticity and dynamic taxes, supporting improvements
in the average ticket prices (Carrier and Fiig, 2018).
Predictive maintenance
(#50)
Rolls-Royce and Boeing launched two shared data
services: Engine Health Monitoring (EHM) and Boeing
Airplane Health Management (AHM) (Aviationpros, 2011;
AUSY, 2019).
Enabled airlines to reduce their maintenance costs by planning
repairs at precisely the right time, helping teams prepare and
order parts in advance, and saving time and money for airlines.
Airport human tracking
(#47) Helsinki airport introduced the world's first real-time
passenger tracking system (Kim, 2014; Traveller, 2014).
Tracking systems enabled a real-time picture of airports and
passengers, supporting data forecasting and allocating proper
ground support (Kovynyov and Mikut, 2019).
Digital twin technology
(#70)
Amsterdam Airport Schiphol began a capital improvement
program to renovate existing facilities by incorporating
digital twin technology and using IBM Maximo for asset
management (Sterke, 2019; Baumann, 2019).
Enabled real-time data to improve operations, adjust
operational changes and forecast through virtual models of an
airport for operational predictions of abnormal situations
(Baumann, 2019; Sterke, 2019).
5.
General
applications
Data analytics and Big Data
(#22)
Gartner Group defined the term “Big Data” in 2001; in that
year, Southwest Airlines, in partnership with Aspect
company, fostered automatic call distribution to optimize
customer contact (Datumize, n.d.; Wilson, 2020).
Improved the agile analysis of a big volume of data in real-
time for general applications such as monitoring service
actions, pricing improvements, and customer segmentation.
New security and safety
technologies (#21)
Following the 9/11 terrorist attacks, considerable changes
to aviation security were made in terms of advanced
screening technologies (Jacobson, 2012; Klenka, 2019).
Enabled the connection between hub devices and cloud-hosted
solutions to record images in real-time, improving the
streaming images to capture and monitor service and security
actions.
New applications based on
artificial intelligence (AI)
(#73, #15)
IATA and ACI launched the New Experience in Travel and
Technology (NEXTT), with new AI applications (The
International Air Transport Association [IATA], 2017;
Aviation Business News, 2018).
Leveraged computational power, scenarios, and data for real-
time adjustments to actions and to develop capabilities around
predictive analytics, providing efficiencies vital to an
airline/airport/air traffic control.
IoT (#72)
IoT in air transport was very noticed with the adoption of
beacons by SITA. This year, the Airbus Smarter Fleet
platform was launched, leveraging IoT and IBM’s Watson
technology (Accelya, 2018; Bajpai, 2018).
IoT allowed the adoption of smart products, connecting
devices to the internet, providing better use of mechanization
with IT and electronic controllers for automation throughout
the aviation chain (Witkowski, 2017).
Model-Based Systems
Engineering (#49)
Boeing introduced advances in model-based systems
engineering practices, design, and assembly processes (Li
et al., 2019; Velocci, 2019).
Enabled faster and more complex systems to detect problems
in the aviation manufacturing field; reducing time, production
costs from better tool design and fabrication, and less re-work.
Virtual and Augmented
reality (#61, #51)
Qantas Airways took Samsung’s Gear VR headsets to the
skies, pioneering the use of inflight VR headsets (Future
Travel Experience [FTE], 2015; Dong, 2019).
Extended reality (XR), which involves virtual reality (VR) and
augmented reality (AR), has been used in various applications,
enabling the designing and testing of new products, training
purposes, indoor airport terminal wayfinding, and other
activities.
2010
2011
2014
2017
2001
2001
2007
2015
2015
2015
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As shown in Figure 1 and Table 2, the selected innovations were categorized into five
innovation clusters. Consequently, in the following section, we discuss these breakthroughs
around clusters addressing problems and creating value for this industry.
5. Discussion
In the aviation sector, the adoption of innovations grew rapidly in the period 2000-
2019, resulting in a diversified technology trajectory and addressing relevant concerns such
as the reduction of emissions, risks related to security and safety environment, and improved
general efficiencies (Macintosh and Wallace, 2009; Pereira and Caetano, 2015). In addition,
the rapid development, diffusion, and increasing utilization of new technologies have
transformed the ways in which the sector interacts with passengers and its supply chain
(Budd and Vorley, 2013).
Around the five clusters, we observed innovations in “Cluster 1 Aircraft technology”,
adding value to efficiency and sustainability, such as addressing issues related to CO2
emissions and noise emissions through an eco-friendlier perspective. The introduction of
larger range aircraft provided more efficiency and allowed long-distance travel that was not
feasible for a limited range of aircraft. New engines promoted the reduction of costs and fuel
consumption. The digitalization processes of analogic aircraft instruments to the digital era
brought more efficiency and safety to aircraft cabins. Moreover, the development of
emerging electric motors has promoted benefits associated with battery capacity.
Regarding “Cluster 2 Innovation/technology in passenger services”, it was noticed
value was created towards a more personalized service, enhancing the customer experience.
Innovations associated with this cluster helped the sector to solve problems in services
matching passengers’ needs at airports with the adoption of a better seamless and automated
journey. The lack of readiness in check-in, boarding, and baggage drop-off services was also
addressed by the adoption of faster procedures with automated systems. The need for more
digital back-office processes was improved by the adoption of new digital processes. In
addition, innovations in this cluster enabled improvements in identification processes during
checkpoints and diversified the in-flight experience.
“Cluster 3 Innovation in flying” integrates advances that create value for the safety and
security environment. More accurate traffic control was possible with the implementation of
new traffic management systems addressing issues and bottlenecks in routes and trajectory
planning. Training procedures were improved with the diffusion of new simulators enabling
the reduction of costs and providing safer environment training.
“Cluster 4 Business and operational management” added value to procedures and
revenue. Improvements in prediction and airfare elasticity with the use of new revenue
management systems addressed the emergence of new distribution models and revenue
management. Innovation in the business model through the offer of ancillary products and
segmentation unlocked new possibilities to increase profitability. On-ground operations were
enhanced with new management systems reducing costs and promoting advances in
maintenance, repair, and overhaul (MRO). Tracking and checkpoint systems have addressed
problems related to passenger bottlenecks. Dispersed information and no-predictive
operations were also enhanced with the adoption of data-driven analysis management. In
addition, the automation processes leveraged operational productivity helping the sector to
reduce workforce costs.
Finally, “Cluster 5 General applications” has created value for Aviation 4.0 as a new
wave of technological transformation related to Industry 4.0, involving ICT and devices
integrations to create smart systems (Yu and Schweisfurth, 2020). Virtualization through
extended reality, which involves virtual reality and augmented reality, has improved tests,
prediction, and experience in general applications. Integrative data-driven and real-time
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technologies based on AI, Machine Learning, and IoT devices have improved decision-
making processes and operations in the whole aviation chain.
As indicated, each cluster has created value for different areas of the aviation sector,
improving efficiency, safety and security, operational and management capabilities, new
customer experiences, and sustainability and providing new opportunities and differentiation
for airports and airlines (Tinoco and Johnson, 2010; Husted et al., 2015; Liu et al., 2017).
The innovations discussed brought benefits to the aviation sector at all levels in
multifaceted ways. At the micro-level, customers have benefited mostly from services at
airports, such as new technologies for booking, ticketing, boarding passes, luggage drop-offs,
and passenger experiences, including more comfort and entertainment experiences in-flight.
Additionally, long-range aircraft with new engines shortened flying distances and times. At
the meso-level (organizations), airports and airlines have benefited from a range of
technologies, mostly related to efficiencies in aircraft, engines, fuel, traffic management,
safety and security procedures, maintenance, and predictive operations. Finally, at the macro-
level, stakeholders and supply chain networks have benefited from the introduction of
innovations for better communication, ICT integration, operations management, and
leveraging on-the-ground services.
6. Conclusions
Over the 20-year period from 2000 to 2019, the aviation sector pioneered numerous
innovations that have been disseminated and fostered by other industries. However,
considering that aviation is a regulated sector with complex structures and supply chains,
there is still a need for “a change of mindset” to create better awareness and paradigm
innovation and change (Ucler and Gok, 2015; Dodd et al., 2018).
Following the 9/11 terrorist attacks, the aviation sector saw unprecedented advances in
its technological trajectory and required more innovative action to bring greater security and
a more enriching experience for passengers. We are now experiencing a unique moment with
the worldwide outbreak of COVID-19, which has affected the aviation industry
unprecedentedly. Despite the restrictions and contingencies related to COVID-19,
improvements in existing solutions and disruptive advances can accelerate the diffusion of
innovations, primarily fostering emerging technologies as critical elements for improvement
and value creation in products, processes, and services.
This study has mapped out innovations as promising fields in value creation,
highlighting ongoing advances, new versions of existing technologies, and radical
innovations contributing to the value creation of different intensities, natures, and objects.
6.1. Theoretical and Practical Implications
Regarding innovation typologies, the findings have valuable implications relating to the
33 innovations discussed. Concerning intensity, 26 advances are incremental innovations that
have provided substantial improvements to existing solutions, and seven innovations involve
a disruptive transformation in products, services, or processes. Concerning the nature of
innovations, 29 innovations have created value in technical areas, and four innovations have
added value to the organizational context. Finally, concerning object typology, 21
innovations added value to products, eight to processes, and four to services.
The innovation clusters demonstrate the complex and multidirectional concepts related
to innovations and value creation, showing the sector’s multifaceted perspectives. In this
research, we undertook an empirical and perceptual survey of experts and analyzed historical
and qualitative data related to existing innovations.
6.2. Limitations and Future Research
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Limitations can be observed when adopting a qualitative methodological approach to
support the selection of innovations and arguments around the value created. Future studies
should investigate the impacts of the innovations highlighted in this study through
quantitative analyses involving innovation performance within the respective clusters.
Another limitation relates to the experts’ selection; when selecting experts to indicate the
most relevant innovations in the sector, we did not adopt a formal expertise verification
process; we observed their profiles and experience suitable to our selection criteria through
their information. Because of the ‘not-identified’ survey condition, it was not possible to
provide further details about each respondent to reinforce their expertise. In addition, we
applied the survey with experts in the aviation and innovation context; maybe, a broader and
generic selection of experts in the sector could improve the discussion around the innovations
and the value created.
Despite the limitations, this study demonstrated the broadness of the implications of
innovation diffusion in the aviation sector in recent years. Further investigation of emerging
innovations is required to understand what value they could have in terms of addressing latent
demand and current issues.
A new technological wave, primarily related to Industry 4.0, was observed as a
potential trend for solving problems and creating new sector opportunities aimed at
improving efficiency and productivity. In the context of the air transport sector, called
Aviation 4.0, which is the stage in aviation where cyber-physical systems will be designed to
assist humans in making decisions and completing hazardous tasks autonomously (Valdés
and Comendador, 2018). This new era still requires further exploration and has the potential
to help improve all key performance areas, particularly in an industry where safety levels are
high, bringing higher levels of automation, digitalization, and data exchange (Valdés and
Comendador, 2018).
Moreover, this research did not intend to provide an in-depth investigation of how
innovations were developed in specific contexts. For example, due to the new challenges that
have emerged with the outbreak of COVID-19 and safety and security issues, how have the
innovations selected in this study been improved and used to add value for passengers and
operations? Furthermore, how does the process of diffusion and adoption of innovations
occur in the specific context of airlines and airports?
Future studies could also develop theoretical insights and map out critical factors
related to conceptual frameworks by demonstrating and validating the adoption of innovation
and value creation in aviation. Furthermore, future studies can contribute to academia and
management by introducing new techniques and opportunities for the aviation sector to foster
and develop innovations. For example, due to contingencies, restrictions, and saturated
markets, the existing literature indicates the use of open innovation and a collaborative
approach to mitigate the technological risks and reduce the costs of developing innovations
(Chesbrough et al., 2018; Zhu, 2022). In addition, the collaborative approach increases
dynamic and absorptive capabilities to identify, assimilate, transform, and explore knowledge
and resources, leading to innovation.
Finally, new agile methods, instead of traditional processes based on extensive, costly,
and prolonged R&D activities, could be useful for future investigations. Such inquiries could
include mechanisms such as corporate ventures and internal units for innovation; external
partnerships involving centers, hubs, and open innovation platforms; collaborative programs
for co-innovation, co-creation, and sandbox tools; venture capital, equity, and acquisition; or
technology transfer, licensing and outsourcing.
Declaration of competing interest
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The authors declare no conflict of interest.
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