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 improvement in the personal computer industry and four other new industries. This paper studies the...

Microelectronics is a special type of General Purpose Technology (GPT), bringing disruptive innovations, not in one shot, but by successive waves for 40 years. Rational innovators maximize present value, over product cycles, before the anticipated obsolescence under Moore's Law.Among the...