At the same time though, consumers of products will not accept performance hits for the sake of long term benefits. People are more averse to short term losses than they are attracted to long term gain
So how do you break this chicken and egg situation?
In reality there is a mix between no.1 and no.2. Many technologies spend a lot of time in development and then move into a niche. SpaceX took six years to launch its first rocket
There are tons of examples of this in history: