Arrested Development : The Experience of European Hard Disk Drive Firms in Comparison with Us and Japanese Firms

This paper analyses how U.S., Japanese, and European HDD firms responded to technological shifts in the hard disk industry from 1973 through 1996. Leading incumbent U.S. HDD firms were frequently forced out of the market. Leading Japanese incumbent firms in the same industry, however, were not displaced by these changes. U.S. startup firms thrived under these technological shifts, displacing U.S. incumbent firms. Japanese startups did poorly. European firms encountered the worst of both worlds: it's incumbent firms were frequently displaced by technological changes, as were U.S. firms; while startup firms (with one exception) performed as poorly as those in Japan