Book contents
- Frontmatter
- Contents
- Preface
- Part I Views of technical progress
- Part II Some significant characteristics of technologies
- Part III Market determinants of technological innovation
- 8 Technical change in the commercial aircraft industry, 1925–1975
- 9 The economic implications of the VLSI revolution
- 10 The influence of market demand upon innovation: a critical review of some recent empirical studies
- Part IV Technology transfer and leadership: the international context
- Index
8 - Technical change in the commercial aircraft industry, 1925–1975
Published online by Cambridge University Press: 08 January 2010
- Frontmatter
- Contents
- Preface
- Part I Views of technical progress
- Part II Some significant characteristics of technologies
- Part III Market determinants of technological innovation
- 8 Technical change in the commercial aircraft industry, 1925–1975
- 9 The economic implications of the VLSI revolution
- 10 The influence of market demand upon innovation: a critical review of some recent empirical studies
- Part IV Technology transfer and leadership: the international context
- Index
Summary
Judged by almost any criterion of performance–growth in output, exports, productivity, or product innovation–the commercial aircraft industry must be considered a star performer in the American economy. American commercial aircraft dominate airline fleets the world over, and the air transportation industry, a primary beneficiary of technical progress in commercial aircraft, has compiled an unequaled record of productivity growth since 1929. Along with this impressive record, however, the aircraft industry presents important anomalies in structure and conduct. Fierce price competition coexists with very high levels of producer concentration and significant product differentiation. The industry also has relatively little vertical integration; contractual relationships predominate in the pursuit of extremely complex and highly uncertain goals in price and performance.
Government policies regarding the commercial aircraft and air transportation industries have been partly responsible for this record of innovation and productivity growth. Government policy has influenced innovation in the aircraft industry through its impact upon the demand for aircraft, both military and civilian, and through direct support of research. The combination of high producer concentration and fierce price and quality competition also reflects the influence of government policy through the provision of both a market and research funding for military aircraft. This government role has also encouraged the development of a vertically disintegrated industry structure and an important role for subcontractors.
- Type
- Chapter
- Information
- Inside the Black BoxTechnology and Economics, pp. 163 - 177Publisher: Cambridge University PressPrint publication year: 1983