Engineering vs. Craftsmanship: Innovation in the Electric Guitar Industry (1945-1984)

DIME Working Paper on Intellectual Property Rights No. 68

25 Pages Posted: 5 Mar 2009 Last revised: 9 May 2013

See all articles by Thierry Rayna

Thierry Rayna

École Polytechnique, i3-CRG, UMR CNRS 9217

Ludmila Striukova

SKEMA Business School - Paris la Défense Campus

Date Written: May 1, 2008

Abstract

Due to its extensive usage of high-tech, the music industry is often discussed in the innovation literature. Music, however, is not only about recording; it is also about means to create music: the instruments.

When it comes to high-tech, the instrument industry is the antipodes of recording industry and most of the musical instruments are still very much the same as what they used to be centuries ago. Yet, the electric guitar industry provides a good example of a technological evolution which is both conservative and modern and the outcome of innovation in this industry greatly differs from other industries. In fact, the electric guitar represents an intense fusion between an already mature market, the guitar market, and disruptive technologies.

Since its invention, in the early 1920s, the electric guitar has been the object of a constant struggle between conservatism and innovation. Its evolution also reflects the opposition between traditional labour-intensive craftsmanship, seen as a proof of quality, and the industrialised processes required by mass production.

The two current market leaders, Fender and Gibson had an equal share of successful and failed innovations, with the best period in terms of innovation being when both Fender and Gibson based their innovations on their core competences. On the other hand, innovations that were inspired by the attempts to copy each other were bound to fail. Another reason for some of the failed innovations is companies' misunderstanding of customers needs.

This paper examines the development paths taken by the two main electric guitar manufacturers, Gibson and Fender, and explores the reasons that led to this way of development, in particular changing users' tastes and Gibson's and Fender's attempts to increase their respective market share. In addition, the rate of innovation, and the evolution of this rate, is analysed for both companies. This research is based on two detailed case studies, that provide an overview of industry development, as well as an empirical analysis of the patent statistics related to these two companies.

Keywords: Electric Guitar, Innovation, Patents

Suggested Citation

Rayna, Thierry and Striukova, Ludmila, Engineering vs. Craftsmanship: Innovation in the Electric Guitar Industry (1945-1984) (May 1, 2008). DIME Working Paper on Intellectual Property Rights No. 68, Available at SSRN: https://ssrn.com/abstract=1353905 or http://dx.doi.org/10.2139/ssrn.1353905

Thierry Rayna (Contact Author)

École Polytechnique, i3-CRG, UMR CNRS 9217 ( email )

828 boulevard Marshals
Paris, 91762
France

Ludmila Striukova

SKEMA Business School - Paris la Défense Campus ( email )

Paris la Défense, 92916
France

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