Successive cycles of innovation : the importance of user heterogeneity and design complementarities for radical product innovations in the camera and computer industries
نویسندگان
چکیده
The paper examines successive cycles of innovation, prompted by the introduction of radical product innovations, in mature industries. Recent history in the camera and computer industries highlights the importance of user heterogeneity and design complementarities in driving new innovation cycles. Hedonic price analysis is used to test for distinct niches in these industries. The results indicate that distinct niches exist, populated by alternative product architectures and distinct sets of dominant firms. The paper addresses the implications of these case studies for current understanding of industry dynamics, market shake-outs, and the geography of global production in mature sectors.
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