Local area networks—Evolving from shared to switched access

Zirulia

2015

J Evol Econ

We study the role that switching costs, compatibility, and mergers and acquisitions, play in influencing the evolution of a multi-market industry. By looking at the case of the Local Area Networking industry, we propose a 'history friendly model' to replicate its evolution during the 1990s. Our model explains how a firm can start from a dominant position in one of the existing markets and exploit switching costs and compatibility to enter a new market when it opens. Mergers and acquisitions also play an important role as the new market is pioneered by a new start-up, which is soon acquired by the dominant incumbent. As a result of the acquisition, the acquiring firm becomes leader also in the new market.

Section: Overview and Definitionsmentioning

confidence: 99%

“…then came Cisco, and the rest is history”: a ‘history friendly’ model of the Local Area Networking industry

Zirulia

2015

J Evol Econ

“…From a technological viewpoint we can identify four phases in the evolution of LAN technology (Christensen et al, 1995). Each phase is associated to the introduction of a particular type of component as well as to the dominance of a specific communication standard.…”

Section: Data Communications Technology: a Short History And Overviewmentioning

confidence: 99%

Mapping technological trajectories as patent citation networks. An application to data communication standards

Economics of Innovation and New Technology

Nuvolari

Verspagen

2009

159

We use patent citation networks to study the dynamics of technical change in Ethernet, a standard for data communication. We first consider the evolution of the broad technological system of local area networks (LANs) and we identify the most significant inventions within the specific subfield of Ethernet. Then we analyse the structure of connectivity of patent citation networks to reconstruct the main technological trajectories in this subfield. Our results suggest that these technological trajectories are characterized by the presence of a number of interconnected technological environments which cluster following an engineering logic. These clusters include the most significant patents related to 'milestones inventions' in the evolution of the LAN technology. Thus, our analysis of the structure of connectivity in patent citation networks seems appropriate to capture both the cumulativeness associated to the development of a specific technology and the significant discontinuities that punctuate the trajectory, as well as the technological interrelatedness characterising large technical systems.technical systems, technological trajectories, patents, network analysis, data communications,

“…Ethernet, Token Ring, and Fast Ethernet). LANs started diffusing in firm environments from mid-1970s and since then several standards have characterised the evolution of the technology during different phases (Christensen et al 1995). During the 1980s Ethernet became the dominant standard (von Burg 2001).…”

Section: Background On the Lan Industry And Technologymentioning

confidence: 99%

Expectations, network effects and timing of technology adoption: some empirical evidence from a sample of SMEs in Italy

Corrocher

2007

Small Bus Econ