Organizing the Electronic Century

This paper's title is an echo of Alfred Chandler's (2001) chronicle of the electronics industry, Inventing the Electronic Century. The paper attempts (A) a general reinterpretation of the pattern of technological advance in (American) electronics over the twentieth century and (B) a somewhat revisionist account of the role of organization and institution in that advance. The paper stresses the complex effects of product architecture and intellectual property regime on industrial organization and technological change. Whereas large research-oriented multi-divisional firms always played a crucial role in the industry's history, such firms proved most adept at systemic innovation, as in the case of television. But, as in the cases of early radio and of the IBM 360 mainframe computer, the multi-divisional firm was capable of bottling up within its boundaries (often through intellectual property rights) a relatively modular architecture whose "option value" such firms could not fully exploit. America's adherence to the model of industrial research within the vertically integrated corporation arguably contributed to the demise of American consumer electronics in the 1970s and 1980s. And America's subsequent relative success in semiconductors and personal computers --- and in today's converged digital consumer electronics --- owes much to the specialized and "fragmented" character of American industry, which could take fuller advantage of competitive global value chains and of the option value of modular architectures.

[1]  Franco Malerba,et al.  The Semiconductor Business: The Economics of Rapid Growth and Decline , 1985 .

[2]  Bruce J. Hunt,et al.  The Continuous Wave: Technology and American Radio, 1900-1932 , 1985 .

[3]  J. Tilton International diffusion of technology : the case of semiconductors , 1971 .

[4]  Kim B. Clark,et al.  Design Rules: The Power of Modularity , 2000 .

[5]  James R Engstrom,et al.  Manufacturing Systems and Technological Change: The U.S. Personal Computer Industry , 1995 .

[6]  David C. Mowery,et al.  Prospects for Entry by Developing Countries into the Global Integrated Circuit Industry: Lessons from the United States, Japan, and the NIEs, 1955–1990 , 1994 .

[7]  Peter Middleton,et al.  Japan's software factories: a challenge to US management , 1993, J. Inf. Technol..

[8]  Territories of Profit: Communications, Capitalist Development, and the Innovative Enterprises of G. F. Swift and Dell Computer. By Gary Fields , 2007 .

[9]  Kenneth L. Kraemer,et al.  Globalization of Innovation: The Personal Computing Industry , 2008 .

[10]  N. Rosenberg Technological Change in the Machine Tool Industry, 1840–1910 , 1963, The Journal of Economic History.

[11]  Arthur L. Norberg New Engineering Companies and the Evolution of The United States Computer Industry , 1993 .

[12]  Timothy F. Bresnahan,et al.  New Modes of Competition: Implications for the Future Structure of the Computer Industry , 1998 .

[13]  T. Forester JAPAN'S MOVE UP THE TECHNOLOGY ‘FOOD CHAIN’ , 1993 .

[14]  Jeffrey R. Yost The Computer Industry , 2005 .

[15]  T. Bresnahan,et al.  The Division of Inventive Labor and The Extent of The Market , 1997 .

[16]  O. Granstrand,et al.  Multi-Technology Corporations: Why They Have “Distributed” Rather Than “Distinctive Core” Competencies , 1997 .

[17]  Alan M. Taylor,et al.  Globalization in Historical Perspective , 2003 .

[18]  Charles H. Ferguson,et al.  Computer Wars: How the West Can Win in a Post-IBM World , 1993 .

[19]  H. James The End of Globalization: Lessons from the Great Depression , 2001 .

[20]  Michael A. Cusumano,et al.  Japan's Software Factories: A Challenge to U.S. Management, Michael A. Cusumano. 1991. Oxford University Press, New York, NY. 513 pages. ISBN: 0-19-506216-7 , 1991, The Journal of Asian Studies.

[21]  R. Langlois,et al.  Capabilities and Governance: The Rebirth of Production in the Theory of Economic Organization , 1997 .

[22]  R. Langlois,et al.  Networks and innovation in a modular system: Lessons from the microcomputer and stereo component industries , 1992 .

[23]  T. R. Reid The chip : how two Americans invented the microchip and launched a revolution , 1986 .

[24]  Steven Klepper,et al.  Dominance by birthright: entry of prior radio producers and competitive ramifications in the U. S. , 2000 .

[25]  G.W.A. Dummer Electronic inventions and discoveries , 1978 .

[26]  Nathan Ensmenger,et al.  Inventing the Electronic Century: The Epic Story of the Consumer Electronics and Computer Industries (review) , 2006 .

[27]  James W. Cortada,et al.  A Nation Transformed by Information: How It Has Shaped the United States from Colonial Times to the Present , 2000 .

[28]  Emerson W. Pugh,et al.  IBM's 360 and early 370 systems , 1991 .

[29]  N. Economides The Economics of Networks , 1995 .

[30]  K. Pavitt,et al.  Knowledge Specialization, Organizational Coupling, and the Boundaries of the Firm: Why Do Firms Know More than They Make? , 2001 .

[31]  Michael Borrus,et al.  CHAPTER FOUR. Trade and Development in the Semiconductor Industry: japanese Challenge and American Response , 2019, American Industry in International Competition.

[32]  R. Langlois Transaction-cost Economics in Real Time , 1992 .

[33]  Timothy F. Bresnahan,et al.  New Modes of Competition , 1999 .

[34]  R. Garud,et al.  Changing competitive dynamics in network industries: An exploration of sun microsystems' open systems strategy , 1993 .

[35]  Jeffrey S. Forrest,et al.  A Nation Transformed by Information , 2001 .

[36]  Martin Fransman,et al.  The market and beyond : cooperation and competition in information technology development in the Japanese system , 1990 .

[37]  Kim B. Clark,et al.  Sun Wars: Competition within a Modular Cluster , 1997 .

[38]  Nathan Rosenberg,et al.  Scientific instrumentation and university research , 1992 .

[39]  G. Dosi Technical Change and Industrial Transformation , 1984 .

[40]  Michael Hobday Semiconductor technology and the newly industrializing countries: The diffusion of ASICs (Application Specific Integrated Circuits) , 1991 .

[41]  Kim B. Clark,et al.  Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of , 1990 .

[42]  Alfred D. Chandler Commercializing High-Technology Industries , 2005 .

[43]  Giovanni Dosi Technical change and survival: Europe's semiconductor industry , 1981 .

[44]  R. Langlois The Vanishing Hand: The Changing Dynamics of Industrial Capitalism , 2001 .

[45]  R. Wilson,et al.  Innovation, competition, and government policy in the semiconductor industry , 1980 .

[46]  Keith Pavitt,et al.  Specialisation and Systems Integration: Where Manufacture and Services Still Meet , 2003 .

[47]  William J. Abernathy,et al.  Patterns of Industrial Innovation , 1978 .

[48]  R. Langlois Modularity in technology and organization , 2002 .

[49]  Takuo Sugano,et al.  Competitive edge : the semiconductor industry in the U.S. and Japan , 1984 .

[50]  Richard N. Langlois,et al.  External Economies and Economic Progress: The Case of the Microcomputer Industry , 1992, Business History Review.

[51]  P. R. Morris A history of the world semiconductor industry , 1990 .

[52]  Richard R. Nelson,et al.  On limiting or encouraging rivalry in technical progress: The effect of patent scope decisions , 1994 .

[53]  Richard N. Langlois,et al.  Chandler in a Larger Frame: Markets, Transaction Costs, and Organizational Form in History , 2004, Enterprise & Society.

[54]  George J. Stigler,et al.  The Organization of Industry , 1969 .

[55]  James Curry,et al.  Beating the Clocks: Corporate Responses to Rapid Change in the PC Industry , 1999 .

[56]  R. Nelson,et al.  American Universities and Technical Advance in Industry , 1994 .

[57]  B. J. Hillman Only the paranoid survive. , 2006, Journal of the American College of Radiology : JACR.

[58]  M. C. Jensen,et al.  Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers , 1999 .

[59]  Steven Klepper,et al.  Technological Extinctions of Industrial Firms: An Inquiry into Their Nature and Causes , 1997 .

[60]  Robert N. Noyce,et al.  A History of Microprocessor Development at Intel , 1981, IEEE Micro.

[61]  E. Helpman General purpose technologies and economic growth , 1998 .

[62]  Richard N. Langlois,et al.  Firms, Markets and Economic Change: A dynamic Theory of Business Institutions , 1995 .

[63]  Allan Afuah Strategies to Turn Adversity into Profits , 1999 .

[64]  T.S. Perry The longest survivor loses its grip [TV receiver manufacture] , 1988, IEEE Spectrum.

[65]  K. Hargreaves Stay tuned. , 2006, Journal of endodontics.

[66]  Daniel A. Levinthal,et al.  Exploration and Exploitation in Organizational Learning , 2007 .

[67]  T. Bresnahan,et al.  Technical Progress and Co-Invention in Computing and in the Use of Computers , 1996 .

[68]  W. Michael Cox,et al.  The right stuff: America's move to mass customization , 1998 .

[69]  R. Nelson,et al.  On the Complex Economics of Patent Scope , 1990 .

[70]  G.E. Moore,et al.  Cramming More Components Onto Integrated Circuits , 1998, Proceedings of the IEEE.

[71]  Kim B. Clark,et al.  Architectural Innovation and Dynamic Competition: The Smaller "Footprint" Strategy , 2006 .

[72]  J. Sparkes The first decade of transistor development: a personal view , 1973 .

[73]  W. Edward Steinmueller,et al.  The evolution of competitive advantage in the worldwide semiconductor industry 1947-1996 , 1999 .

[74]  Leonard S. Reich Research, Patents, and the Struggle to Control Radio: A Study of Big Business and the Uses of Industrial Research. " , 1977 .

[75]  J. Brittain,et al.  The semiconductor industry. , 1978, Science.

[76]  Richard R. Nelson,et al.  The Link Between Science and Invention: The Case of the Transistor , 1962 .

[77]  Richard N. Langlois Microelectronics : an industry in transition , 1988 .

[78]  George Strauss,et al.  Tracking the Giant Corporation@@@Scale and Scope: The Dynamics of Industrial Capitalism. , 1991 .

[79]  P. David,et al.  The Economics Of Compatibility Standards: An Introduction To Recent Research 1 , 1990 .

[80]  Emerson W. Pugh,et al.  IBM's Early Computers , 1985 .

[81]  G. Gilder Microcosm: The Quantum Revolution In Economics And Technology , 1989 .

[82]  Glenn Rifkin,et al.  Ultimate Entrepreneur: The Story of Ken Olsen and Digital Equipment Corporation , 1988 .

[83]  N. Economides The economics of networks , 1996 .

[84]  C. Hilsum,et al.  Revolution in Miniature , 1979 .

[85]  Linwood S. Howeth History of communications electronics in the United States Navy , 1963 .

[86]  David P. Angel,et al.  Restructuring for Innovation: The Remaking of the U.S. Semiconductor Industry. , 1994 .

[87]  Sungook Hong,et al.  Wireless: From Marconi's Black-Box to the Audion , 2001 .

[88]  P. David The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox , 1990 .

[89]  Kenneth L. Kraemer,et al.  Dell Computer: Organization of a Global Production Network , 2002 .

[90]  Timothy F. Bresnahan,et al.  Industrial Dynamics and the Evolution of Firms' and Nations' Competitive Capabilities in the World Computer Industry , 1997 .

[91]  William Rupert Maclaurin,et al.  Invention and Innovation in the Radio Industry , 1950 .

[92]  Steven W. Usseiman IBM and its Imitators: Organizational Capabilities and the Emergence of the International Computer Industry , 1993 .

[93]  Joel Mokyr,et al.  Punctuated Equilibria and Technological Progress , 1990 .

[94]  Emerson W. Pugh Memories that shaped an industry , 1984 .

[95]  David T. Methé,et al.  Technological Competition in Global Industries: Marketing and Planning Strategies for American Industry , 1990 .

[96]  Gary Fields Territories of Profit: Communications, Capitalist Development, and the Innovative Enterprises of G. F. Swift and Dell Computer , 2003 .