Changes in the Industrial Organization: Rise of Spin-Outs

Shimizu, Hiroshi

doi:10.1007/978-981-13-3714-7_11

Hiroshi Shimizu³

Part of the book series: Advances in Japanese Business and Economics ((AJBE,volume 21))

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Abstract

As we have seen, laser diode R&D emerged primarily for optical communication applications. Due to technological developments in optical fibers, the wavelength resulting in the least transmission loss changed from short wavelengths of the 800-nm range to longer wavelength of 1300-nm and 1550-nm ranges. Therefore, more focus was given to R&D to develop laser diodes that would make high-speed, high-capacity optical communication possible at those longer wavelengths. To that end, scientists and engineers at telecommunications R&D facilities developed longer-wavelength laser diodes. Simultaneously, however, scientists and engineers began to develop shorter-wavelength laser diodes for optical information recording and processing, as more information could be processed with shorter-wavelength laser diodes.

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Notes

1.
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2.
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3.
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4.
In regards to the demolition of Bell Laboratories, see Temin, P., and L. Galambos (1987): The Fall of the Bell System: A Study in Prices and Politics. Cambridge; New York: Cambridge University Press.
5.
Ibid.
6.
Sarnoff was eventually integrated into SRI International in 2011.
7.
Finisar’s optical transceiver was standardized by the American National Standards Institute in 1992. As a result, Finisar grew rapidly in the optical communication industry. Sales in fiscal year 2014 amount to approximately 1 billion dollars, making it one of the world’s leading optical communication device manufacturers.
8.
Interview [111].
9.
Optical Concepts was later acquired by Gore Photonics.
10.
Agility Communications was later acquired by JDSU.
11.
Terabit Technology was acquired by Ciena in 1998.
12.
Lasertron was bought out by Oak Industries in 1995 at 108 million dollars. Oak Industries was acquired by Corning in 1999. And in 2003, Lasertron’s department was shut down. For details, refer to Purvis, G. (2005): “Axcel Gets Lasertron Pedigree,” III-Vs Review, 18, 40–41.
13.
Ortel was acquired by Lucent Technologies in 1980.
14.
As we will see later, Mooradian left Micracor in 1997 and founded a new startup called Novalux.
15.
Regarding the establishment of SDL and its business, see Jacobs, R. R., and D. R. Scifres (2000): “Recollections on the Founding of Spectra Diode Labs, Inc.,” IEEE Journal of Selected Topics in Quantum Electronics, 6, 1228–1230.
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17.
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18.
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20.
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21.
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22.
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23.
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24.
Ibid., p. 59.
25.
Ibid., p. 64.
26.
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27.
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28.
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29.
Furthermore in 1998, Botez established a startup called Alfalight specializing in the design and manufacture of high-power laser diode. Interview [31].
30.
Interview [31, 150].
31.
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34.
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35.
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38.
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39.
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40.
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41.
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42.
For example, the U.S. Department of Defense budget for laser research in 1963 was about 20 million U.S. dollars Kragh, H. (1999): Quantum Generations: A History of Physics in the Twentieth Century. Princeton, New Jersey: Princeton University Press., p. 390.
43.
Many researchers in the United States have pointed this out. Interviews [28, 31, 56, 63, 64, 141].
44.
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45.
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46.
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47.
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48.
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49.
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50.
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51.
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52.
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53.
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56.
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57.
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58.
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59.
Interview [28]. Tirman (1984) also points out that the Department of Defense was also favorable towards diverting technology to the private sector. Tirman, J. (1984): The Militarization of High Technology. Cambridge, Mass.: Ballinger Pub. Co.
60.
Collins illustrates the importance of implicit knowledge in R&D. Collins, H. M. (1999): “The Tea Set: Tacit Knowledge and Scientific Networks,” in The Science Studies Reader, ed. by M. Biagioli. New York: Routledge, 95–109, Collins, H. M., and R. G. Harrison (1975): “Building a Tea Laser: The Caprices of Communication,” Social Studies of Science, 5, 441–450. Regarding formal knowledge and implicit knowledge in new product development of a firm, see Nonaka, I., and H. Takeuchi (1995): The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation. New York: Oxford University Press.
61.
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62.
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63.
Cole (1979) analyzed the fluidity of Yokohama and Detroit and demonstrated that in Yokohama, the percentage of workers who never changed job since their first employment opportunity increased after postwar to 76.5% between 1966 and 1970. In Detroit, that ratio was 36.8% from 1966 to 1970, with more than 60% of workers experiencing a job change. Cole, R. E. (1979): Work, Mobility, and Participation: A Comparative Study of American and Japanese Industry. Berkeley: University of California Press.
64.
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The IPC codes provided by the Japan Patent Office for laser diode technology are Japanese File Index (FI) = H01S5/00, H01S3/094, H01S3/091, H01S3/096, H01S3/103, H01S3/133, H01S3/18, H01S3/04, H01S3/08, and H01S3/23. The equivalent US Codes (USC) are 372/43$, 372/44$, 372/45$, 372/46$, 372/49$, 372/50$, and 372/75. The International Patent Classification (IPC) codes are H01S5/$, H01S3/018, and H01S3/019. $ indicates truncation of the subclasses. This study uses the USC and IPC codes for identifying patents on laser diodes granted by the USPTO.
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79.
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80.
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81.
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82.
Forrest, S. R., L. A. Coldren, S. C. Esener, D. B. Keck, F. J. Leonberger, G. R. Saxonhouse, and P. W. Whumate (1996): “JTEC Panel on Optoelectronics in Japan and the United States Final Report,” Baltimore, Maryland: Japanese Technology Evaluation Center/International Technology Research Institute., p. xvii.
83.
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84.
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85.
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86.
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87.
“Toshiba Closed Post-Process Factory in Shizuoka – Terminated Sale of Laser Diode”, “Nikkan Kogyo Shimbun”, January 12, 2010.
88.
“Philips Withdrew from Semiconductor & Cut 4000 Workers”, ‘Nihon Keizai Shimbun’, September 5, 1990.
89.
“Philips Transferred Light-Related Business to U.S. Firm – Even Invested in that Firm”, ‘Nikkei Sangyo Shimbun’, April 23, 1998.
90.
“NEC Developed Two Kinds of Low-Priced Visible Light Consumer Laser Diode, Selling for Less Than 100 U.S. dollar (10,000 yen) a Unit Starting in March”, ‘Nikkei Sangyo Shimbun’, January 22, 1982.
91.
“Fujitsu, Low-Price Offensive via DAD Visible Light Laser Diode – Sample Shipment to Start in February”, ‘Nikkei Sangyo Shimbun’, January 27, 1982.
92.
“Sanyo Establishes Mass Production Technology for Visible Light Laser Diode – Monthly Volume of 10,000 Units in Summer”, ‘Nikkei Sangyo Shimbun’, May 14, 1982.
93.
“Sony Outsources Laser Diode”, ‘Nikkei Sangyo Shimbun’, November 14, 1984.
94.
“Rohm, the World’s First Practical Application of MBE – Enters Laser Diode”, ‘Nikkei Sangyo Shimbun’, November 29, 1984.
95.
It was said that Haruo Tanaka had decided to implement MBE. Interview [163].
96.
“Hitachi Makes Comeback with CD Laser Diode – Aims for 100,000 Units Next Year”, ‘Nikkei Sangyo Shimbun’, April 17, 1985.
97.
“Laser Diode Price Plunge Due to Intensified Competition”, ‘Nikkei Sangyo Shimbun’, February 1, 1989.
98.
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99.
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References

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Faculty of Commerce, Waseda University, Tokyo, Japan
Hiroshi Shimizu

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Shimizu, H. (2019). Changes in the Industrial Organization: Rise of Spin-Outs. In: General Purpose Technology, Spin-Out, and Innovation. Advances in Japanese Business and Economics, vol 21. Springer, Singapore. https://doi.org/10.1007/978-981-13-3714-7_11

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DOI: https://doi.org/10.1007/978-981-13-3714-7_11
Published: 18 May 2019
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