Abstract
The focus of this research is on the impact of the diffusion of innovations in integrated circuit technology on the market structure of that industry and the implications of firm strategy for both further innovation and market structure change. The study examines the effects of sustained product innovation over a fifteen-year-period in the DRAM segment of the integrated circuit industry. Assessments are made on first mover advantages, shape of the diffusion curve, and resource needs in a market characterized by an increasingly complex technology. Comparisons are made along the dimensions of number of firms in the market, continuity of the firms and market concentration.
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