This book offers one of the first analyses of the economic forces
behind the introduction of new, improved versions of existing
microelectronic products, with particular emphasis on the
microelectronics components industry from 1960 to 1983. Swann
begins with a concise account of the theories of quality innovation
and quality choice. He discusses the byproducts of microelectronic
technology, the measurement of computer systems and hence, product
quality, and the most important issues in the economics of product
design and production. He demonstrates that quality innovation in
microprocessors can be described by a time series of price
functions, an important preliminary for an econometric analysis of
quality choice. The quality innovation strategies of individual
microelectronics producers and the changing demand for their
products are examined and described. As an alternative perspective
on the analysis of quality demand, the author provides three case
studies examining whether, from an engineering point of view, the
quality of available of available components hampered the
development of particular applications. These case studies provide
a realistic understanding of the many issues that must be resolved
before microelectronic innovations can be used effectively. In
conclusion, Swann contends that the market incentive for quality
innovation often appears well before the end-user is able to
appreciate fully the true value of the innovation.
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