A decade of microprocessor innovation: an economist's perspective

During the decade following the introduction of the first microprocessor in 1971, 203 different microprocessors were introduced. Of these products, 69 were original designs whilst 134 were second-source versions, or copies, of the originals. This paper analyses the entire range of new microprocessors introduced during the period 1971–1981, and draws conclusions on what motivates the different manufacturers to produce the devices they do, the role of product standards and the role of second-source producers. The strategies of six major companies that produce original designs are considered in detail and show the emergence of a product leader.