Business

Archaeology

Investment (military)

Politics

History

Engineering

Technological change

Political science

Artificial intelligence

History of technology

Computer science

Industrial organization

Rather long re-investment cycles of about 15 years have created the notion that innovation in the machine tool industry happens incrementally. But looking at its recent history, the integration of digital controls technology and computers into machine tools have hit the industry in three waves of technology shocks. Most companies underestimated the impact of this new technology. This article gives an overview of the history of the machine tool industry since numerical controls were invented and introduced and analyzes the disruptive character of this new technology on the market. About 100 interviews were conducted with decision-makers and industry experts who witnessed the development of the industry over the last forty years. The study establishes a connection between radical technological change, industry structure, and competitive environment. It reveals a number of important occurrences and interrelations that have so far gone unnoticed. The findings are supported by a worldwide qualitative survey in which statements from 59 companies were collected. Index Terms -Machine tools, numerical controls, history, strategy, innovation, technological change, technology shock.

The recent history of the machine tool industry and the effects of technological change