A Network View of Innovation and Entrepreneurship: The Case of the Evolution of the VCR Systems

Abstract

A case study of the development of the video cassette recorder (VCR) industry in Japan is presented, focusing on the concepts of systematic innovation & cross-border networks. It is shown that VCR systems evolved through their interplay with market forces & entrepreneurial activity in spontaneous networks. The systemic nature of innovation is discussed, the rivalry between the Betamax & VHS formats is explored, & the crucial importance of cross-border networks in global competition is investigated. The case study demonstrates how information/knowledge regarding new design configuration & new market selection criteria are dynamically created, & how the cross-border network (between Japanese & US companies) & the emergent global context function in setting the world VCR standard. It is concluded that the role played by network management in innovation has gained in strategic importance in recent years. 1 Figure, 23 References. W. Howard