The Importance of Process Innovation on Formation of Dominant Design

―A Case of LCD Industry―

Abstract

　This research analyzes how TFT-LCD became a dominant design of LCD industry. While previous studies described the formation of dominant design as a result of product innovation, this study points out the possibility that process innovation plays an important role in the formation of dominant design. According to the case study, it has found that the dominant design established as product innovation and process innovation had occurred concurrently in the LCD industry. The finding indicates that the relationship of trust with suppliers is important in the phase of technological change.