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The Pardox Of High R&D And Industry Stability: Technology And Structural Dynamics In The Global Hearing Instrument Industry

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  • Peter Lotz

Abstract

The hearing instruments (hearing aids) industry is typically described as a technologically vigorous area. One indication is high R&D intensity. And yet over the past 25 years, the structure of this industry worldwide has remained surprisingly stable. This paper analyzes the industry's technology and structural dynamics in order to shed light on this paradox. It is shown that the industry's market structure and patterns of components supply exert strong influences on the nature of technological development, and that the technology in turn is to a large degree blocking changes in industry structure, especially entry and vertical integration.

Suggested Citation

  • Peter Lotz, 1998. "The Pardox Of High R&D And Industry Stability: Technology And Structural Dynamics In The Global Hearing Instrument Industry," Industry and Innovation, Taylor & Francis Journals, vol. 5(2), pages 113-137.
    • Handle: RePEc:taf:indinn:v:5:y:1998:i:2:p:113-137
    DOI: 10.1080/13662719800000007
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    Cited by:

    1. Sandström, Christian G., 2016. "The non-disruptive emergence of an ecosystem for 3D Printing — Insights from the hearing aid industry's transition 1989–2008," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 160-168.
    2. Nicolai J. Foss, 2003. "Selective Intervention and Internal Hybrids: Interpreting and Learning from the Rise and Decline of the Oticon Spaghetti Organization," Organization Science, INFORMS, vol. 14(3), pages 331-349, June.
    3. Sandström, Christian, 2015. "Adopting 3D Printing for manufacturing - The case of the hearing aid industry," Ratio Working Papers 262, The Ratio Institute.

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