Different evolutionary paths: Technological development of laser diodes in the US and Japan, 1960-2000

Exploring the technological development of laser diodes from 1960 to 2000, this study examines how US and Japanese firms diverged from the same technological target to take separate evolutionary paths over time and came to be competitive in the different areas. Scrutinising the level of vertical integration, entrepreneurial start-ups, scientists' mobility and research networks, it shows that R&D efforts were scattered over different technological domains, giving US firms the chance to obtain technological advantages in customised and small markets. R&D efforts were concentrated in the same targeted markets in Japan, giving Japanese companies the opportunity to capture the markets offering the highest sales volumes.