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Technological Change Within Hierarchies: The Case Of The Music Industry

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  • Jeffrey Funk

Abstract

This article uses the music industry to demonstrate a model of technological change that explains the sources and timing of technological discontinuities and dominant designs. The process by which firms translate customer needs into products can be represented in terms of an interaction between customer choice and product design hierarchies. Technological improvements at lower levels in the product design hierarchy can change the design tradeoffs and thus affect movements up and down the hierarchies. Movements up the hierarchies lead to the emergence of new product classes (i.e., technological discontinuity) whereas movements down the hierarchies may result in the emergence of a dominant design in a specific product class.

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  • Jeffrey Funk, 2007. "Technological Change Within Hierarchies: The Case Of The Music Industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(1), pages 1-16.
    • Handle: RePEc:taf:ecinnt:v:16:y:2007:i:1:p:1-16
    DOI: 10.1080/10438590600661582
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    References listed on IDEAS

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    Cited by:

    1. Stoneman, Paul, 2011. "Soft Innovation: Economics, Product Aesthetics, and the Creative Industries," OUP Catalogue, Oxford University Press, number 9780199697021.
    2. Gilbert, Brett Anitra & Campbell, Joanna Tochman, 2015. "The geographic origins of radical technological paradigms: A configurational study," Research Policy, Elsevier, vol. 44(2), pages 311-327.
    3. Gediminas Adomavicius & Jesse Bockstedt & Alok Gupta, 2012. "Modeling Supply-Side Dynamics of IT Components, Products, and Infrastructure: An Empirical Analysis Using Vector Autoregression," Information Systems Research, INFORMS, vol. 23(2), pages 397-417, June.
    4. Massimiliano Mazzanti & Caterina Cardinali, 2011. "Innovation Dynamics and Evolutionary Economic Paths in the Music Industry," Working Papers 201113, University of Ferrara, Department of Economics.
    5. Funk, Jeffery, 2009. "Components, systems and discontinuities: The case of magnetic recording and playback equipment," Research Policy, Elsevier, vol. 38(7), pages 1192-1202, September.

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