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      The Evolution of the Digital Computation Industry

      Published
      research-article
      , ,
      Prometheus
      Pluto Journals
      Uncertainty, Evolution, Computer Industry, Knowledge
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            Abstract

            All industries are based upon a core of knowledge. Economic evolution is the growth of this knowledge as an experimental and path-dependent process involving markets, firms, finance, entrepreneurship, and often substantial uncertainty. In the set of industries associated with information technology, the core of knowledge is programmable digital computation (PDC). In this paper, we outline the origins and development of PDC, and in particular the path from the mainframe industry to the PC. We tell this story in order to highlight a number of salient features about the relationship between competition and evolution. First, the predominant form of competition was not focused about competitive pricing in existing markets, but rather for the creation of new markets and therefore monopoly positions. Second, as the IBM story demonstrates, this involved leveraging competencies between markets, often deliberately destroying a market in order to create a new one. Third, as the hacker tradition illustrates, much of the entrepreneurial development of the industry came from the users, due to their close conception of the technological possibilities and opportunities. Fourth, we highlight the overarching importance of the setting of standards (by fiat, by self-organization, or by monopoly) and the role this has in reducing uncertainty. We offer some policy and management lessons based upon this analysis.

            Content

            Author and article information

            Journal
            cpro20
            CPRO
            Prometheus
            Critical Studies in Innovation
            Pluto Journals
            0810-9028
            1470-1030
            December 2002
            : 20
            : 4
            : 323-336
            Article
            10032469 Prometheus, Vol. 20, No. 4, December 2002, pp. 323-336
            10.1080/0810902021000023372
            9788115c-d1be-480c-b8d7-a25cc3f6cff5
            Copyright Taylor & Francis Group, LLC

            All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

            History
            Page count
            Figures: 0, Tables: 0, References: 32, Pages: 14
            Categories
            Original Articles

            Computer science,Arts,Social & Behavioral Sciences,Law,History,Economics
            Knowledge,Uncertainty,Evolution,Computer Industry

            References

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