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Market adjacency and competing technologies: evidence from the flat panel display industry

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  • Derek Lehmberg
  • Charles Dhanaraj
  • Rod White

Abstract

What determines the emergence of a winner between competing technologies? We examine competition between flat panel display technologies, with the purpose of understanding of how liquid crystal display was able to surpass plasma display panel technology despite the initial lack of a convincing technological or cost advantage, and in the absence of network externalities. We propose an explanation whereby the relative availability of pathways of suitable adjacent applications markets provides differential opportunities for technologies to increase their scope and scale of application incrementally, effecting the speed of development as well as the cost effectiveness of the end products. Our findings suggest that these sets of adjacent application markets available can strongly influence which technologies emerge as winners and which are eventually abandoned.

Suggested Citation

  • Derek Lehmberg & Charles Dhanaraj & Rod White, 2019. "Market adjacency and competing technologies: evidence from the flat panel display industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(6), pages 1429-1447.
    • Handle: RePEc:oup:indcch:v:28:y:2019:i:6:p:1429-1447.
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    File URL: http://hdl.handle.net/10.1093/icc/dtz009
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    More about this item

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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