Abstract
In recent years, the Taiwanese firms in traditional industries face fierce cost competition from the worldwide market, especially the emerging countries. The cost competition is even more severe in the post-ECFA (Economic Cooperation Framework Agreement) era. It becomes imperative to upgrade their R&D capabilities for traditional industries. The paper uses the concept of disruptive innovation as the framework to examine the feasibility of adopting military First Person View (FPV) in the civilian radio control model industry. The development of FPV-inside technologies, business models and markets is discussed via literature review, market statistics and expert interviews. The results indicate that the concept of disruptive innovation is useful for de-grading military technologies into civilian uses for traditional firms. Some managerial and policy implications for upgrading traditional firms are suggested