Publications
Publications
- January 2020
- HBS Case Collection
The Origins of Bell Labs
By: Tom Nicholas and John Masko
Abstract
In 1947, scientists at Bell Labs invented the transistor—a tiny signal amplifier that would go on to become the fundamental building block of the digital age. But, confounding most traditional economic assumptions, it was not a vigorous startup that made this momentous discovery but the R&D lab of the America’s telecommunications monopoly, AT&T. This case explores the early years of U.S. telephone history and its years of negotiation between monopolists, independent competitors, and regulators; raises questions of whether telecommunications really are a “natural monopoly”; explores the incentives that lead firms to innovate; and traces the story of how AT&T came to become one of the foremost innovation engines of the 20th century.
Keywords
Business History; Innovation Leadership; Technological Innovation; Patents; Monopoly; Organizational Structure; Competitive Strategy; Telecommunications Industry; Boston; Massachusetts; New York (city, NY)
Citation
Nicholas, Tom, and John Masko. "The Origins of Bell Labs." Harvard Business School Case 820-081, January 2020.