title: Product and process innovations in the life cycle of an industry
abstract: Filson (2001) uses industry-level data on firm numbers, price, quantity and quality along with an equilibrium model of industry evolution to estimate the nature and effects of quality and cost improvements in the personal computer industry and four other new industries. This paper studies the personal computer industry in more detail and shows that the model explains some peculiar patterns that cannot be explained by previous life-cycle models. The model estimates are evaluated using historical studies of the evolution of the personal computer industry and patterns that require further model development are described
keyphrases: equilibrium model industry evolution life-cycle models technological change industry dynamics personal computer market microelectronics PC industry production cost