Title: The role of techno-countervailing power in inducing the development and dissemination of new functionality – an analysis of Canon printers and Japan's personal computers

Authors: Chihiro Watanabe, Shanyu Lei

Addresses: Department of Industrial Engineering and Management, Tokyo Institute of Technology, 2-12-10 Ookayama, Meguro-ku, Tokyo 152-8522, Japan. ' Department of Industrial Engineering and Management, Tokyo Institute of Technology, 2-12-10 Ookayama, Meguro-ku, Tokyo 152-8522, Japan

Abstract: Industrial economics suggests that a competitive environment induces firms to undertake vigorous R&D, while a monopoly enables firms to efficiently acquire R&D resources. Therefore, optimal co-evolution between competition and monopoly is indispensable for significant technological innovation. This paper attempts to demonstrate this postulate by analysing the interacting dynamism between technological development and production in the printers market as well as subsequent demand for the expansion of the personal computer market driven by new functionality development of printers. On the basis of an empirical analysis of Canon printers and Japan|s personal computers, the significant role of techno-countervailing power between supply and demand in inducing and disseminating new functionality is demonstrated.

Keywords: functionality development; Canon printers; Japanese PCs; personal computers; price elasticity; Japan; techno-countervailing power; technology elasticity; technological innovation; competition; monopoly; R&D; research and development.

DOI: 10.1504/IJTM.2008.020705

International Journal of Technology Management, 2008 Vol.44 No.1/2, pp.205 - 233

Available online: 12 Oct 2008 *

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