Disruptive Innovation Reshaping Future RCEP

The arena of technological advancements continues to grow due to changing market demands, which creates inevitable competition among innovators. Thus, this leads to the emergence of disruptive innovation. This chapter examines the relationship between the Regional Comprehensive Economic Partnership (RCEP) agreement and the advent of Disruptive Innovation. RCEP was signed in November 2020 by a total of fifteen countries, with the goal of advancing regional economic integration and exerting greater influence over the Free Trade Agreement (FTA). The main focus of this chapter is on assessing the benefits of disruptive innovation and trade under the Regional Comprehensive Economic Partnership (RCEP). We performed a literature review and applied SWOT analysis in order to assess the strengths and weaknesses of disruptive innovation, as well as the opportunities and challenges presented by the Regional Comprehensive Economic Partnership. Disruptive innovation can be beneficial to the majority of RCEP countries since it can raise market growth, increase profit, and increase the productivity of – and efficiency for, disruptive technologies used in manufacturing. On the other hand, the possible challenges may be detrimental to smaller emerging economies, whose employment rates may be adversely impacted, and local enterprises may be overshadowed as a result of the increased competition.

Keywords: Disruptive Innovation, Regional Comprehensive Economic Partnership (RCEP), SWOT analysis.