A new approach for understanding dominant design: The case of the ink-jet printer

We study dominant design strategies concerning the allocation of technological resources for ink-jet printers. We find that the dominant design for each firm can be quantitatively represented by the number of ink-jet patents in nine categories of a matrix that distinguishes patents according to method of implementation and type of module. Further, we find that annual firm ink-jet revenue from 1990 through 2000 is positively correlated with a balanced dispersion of patents across the nine categories. Results suggest that higher revenues will accrue to firms in integrated industries when resources are balanced among important sub-technologies in the dominant design.