The case of the microcomputer industry

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External economies and economic progress:
The case of the microcomputer industry
Langlois, Richard N. Business History Review.
Boston: Spring 1992. Vol. 66, Iss. 1; pg. 1, 50 pgs

Abstract (Summary)
The microcomputer industry is a striking case in which industrial growth took place through the creation of external capabilities - that is, capabilities produced by and residing in a specialized market network rather than in large organizations enjoying internal economies of scale and scope. In the microcomputer industry, the most successful products were those that took the greatest advantage of the market. The greatest failures occurred when business enterprises bypassed the external network of add-on suppliers and attempted to rely significantly on internal capabilities. The industry provides lessons for the present-day debates about industrial competitiveness and the forms of economic organization conducive to it.