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Hearing Instruments

In: Business and Management

Submitted By yuanlin
Words 4881
Pages 20
Dynamics and innovations:
Hearing instrument B

ERASMUS UNIVERSITEIT ROTTERDAM
Erasmus School of Economics
Department of Applied Economics

Written by
Student names: Sang van Tran
Zhi Yuan Lin
Student numbers: 318938
320853

Supervisor:
Ajay Bhaskarabhatla

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Abstract
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This study argues that patents explain the extent of innovation between incumbent firms and new entrants in the hearing aid industry. In the year 1953 the transistor was introduced to the hearing aid industry, the knowledge behind the transistor was free of charge and open to every firm. This had a huge impact on the innovative activity of incumbent firms and new entrant in the hearing aid industry.

1. Introduction
Inventions throughout the history prove their economic value each and every time (Maclaurin, 1953). In the year 1920 a scientist named Earl C. Hansen invents and patents the first vacuum tube hearing aid. The vacuum tubes are very big of size, which made it not easy to carry. With the arrival of the transistor invented by the American firm Bell Labs in 1948 it was possible to minimize the size, it requires much less energy input, and it was more durable in application of the hearing aid (Nelson, 1962). In the early 1950’s the transistor hearing aids were introduced, at the same time they also began replacing the vacuum tube hearings aids. The smaller transistor size and the lower battery voltage requirements made it possible to have a remarkable miniaturization in hearing devices. In 1956 Bell labs was forced to license the patent of transistors free of charge. This resulted to free access to the architectural invention for all firms in the hearing aid industry. There are different kinds of innovations. Incremental

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