Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- List of contributors
- Prefatory note
- Introduction
- Part 1 Innovation and economic growth
- Part 2 The microdynamics of the innovation process
- 3 Schumpeter's prophecy and individual incentives as a driver of innovation
- 4 Creative destruction in the PC industry
- Comments to Chapters 3 and 4
- Part 3 Innovation and industrial dynamics
- Part 4 Innovation and institutions
- Part 5 Innovation, firms' organization, and business strategies
- Part 6 Innovation and entrepreneurship
- Part 7 Innovation and evolution of the university system
- Part 8 Innovations and public policy
- Index
4 - Creative destruction in the PC industry
Published online by Cambridge University Press: 06 January 2010
- Frontmatter
- Contents
- List of figures
- List of tables
- List of contributors
- Prefatory note
- Introduction
- Part 1 Innovation and economic growth
- Part 2 The microdynamics of the innovation process
- 3 Schumpeter's prophecy and individual incentives as a driver of innovation
- 4 Creative destruction in the PC industry
- Comments to Chapters 3 and 4
- Part 3 Innovation and industrial dynamics
- Part 4 Innovation and institutions
- Part 5 Innovation, firms' organization, and business strategies
- Part 6 Innovation and entrepreneurship
- Part 7 Innovation and evolution of the university system
- Part 8 Innovations and public policy
- Index
Summary
Introduction: because it is there! Why?
The personal computer (PC) industry offers a marvelous opportunity to study creative destruction. Over its first twenty years, the industry experienced a number of Schumpeterian waves of creative destruction. Each wave involved many of the distinct markets in the industry. Waves struck established dominant firms in hardware, in software, and networking; in general-purpose technologies; and in applications. While not numerous enough for systematic statistical analysis, the many instances of waves in many markets present an opportunity to think analytically about the causes and consequences of creative destruction. The waves of PC industry creative destruction stopped ten years ago. Even though occasions for waves continued, creative destruction of established firms' positions in the most strategic PC markets ceased.
The PC industry offers us the chance to see how creative destruction occurs. It also lets us to distinguish analytically between circumstances permitting creative destruction and other circumstances blocking it.
Technology and demand
Any analytical enquiry into creative destruction must answer a series of “Why?” queries, and this is no exception. Schumpeter observed that competition from new commodities, new technologies, new sources of supply, and new types of organization is particularly important for long-run growth. That normative observation addresses the social value of creative destruction.
Sometimes we interpret the normative observation as also providing a positive theory of creative destruction. Why are there Schumpeterian waves? Because they are crucial to growth! Yet that is seriously incomplete. It does not answer what changes occur in technology or demand to make a wave of creative destruction part of the socially desirable innovation path. Even more important, the normative observation does not answer critical positive questions.
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- Information
- Perspectives on Innovation , pp. 105 - 140Publisher: Cambridge University PressPrint publication year: 2007
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