Final answer:
The horizontal axis of the markets-and-technology framework asks whether the innovation is targeted toward existing markets or new markets. This differentiation helps firms understand their strategic market focus. Personal computers serve as an example of technology that created new market spaces and eventually disrupted the existing market structure.
Step-by-step explanation:
The question posed for placement along the horizontal axis of the markets-and-technology framework is closely related to the concept of innovation within a market structure. The correct answer to this question is: D. Is the innovation targeted toward existing markets or new markets?
In other words, this axis typically measures the market focus of a technological innovation. As firms consider their strategic position, this differentiation helps in understanding whether their innovative efforts are designed to penetrate the existing market deeper or to create and explore entirely new markets. An example of targeting new markets with disruptive technology can be seen in the evolution of the computer industry, where personal computers disrupted and eventually found a dominant place in the market initially occupied by mainframes and minicomputers.
Additionally, the importance of Research & Development (R&D) in fostering technological advancements is critical. R&D can be a challenging process due to the uncertain future of technological progress and the broad availability of technology post-invention, making the investment in innovation a strategic and risky endeavor.