The Dismantling of the Japanese Model in Consumer Electronics: The Case of the digital Amplifier

Jens Frøslev Christensen, Michael Holm Olesen, Jonas Kjær

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    This paper addresses an issue of great importance for the future organization of the consumerelectronics industry: the "battle" of control over component-based digitization. We are now witnessing the dismantling of the Japanese Model that has prevailed in consumer electronicsover the past 30 years. Specialized and large-scale component suppliers have taken the lead inmost component-based innovations and have obtained increasingly powerful positions in thevalue chain of consumer electronics. This paper provides an in-depth study of the strategic andstructural ramifications of one such component-based innovation, the current transformation ofsound amplification from conventional to digital amplifiers. We study the early formation of thisnew technology as especially reflected in the particularly dynamic cluster of innovation inDenmark and extend the analysis to the global strategizing around this new technology. Aframework is developed to explain the reluctance of most of the large consumer electronicsgiants in developing/adopting this new technology.Key words: Consumer electronics, Industrial dynamics, Open InnovationJEL Codes: L6, L68, O32
    Original languageEnglish
    Place of PublicationKøbenhavn
    PublisherDRUID - Danish Research Unit for Industrial Dynamics
    Number of pages33
    ISBN (Print)8778731615
    Publication statusPublished - 2004

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