Biology of Business

Invention of the first digital camera

S. Sasson

IEEE History Center (2007)

TL;DR

Kodak invented digital camera in 1975, refused to cannibalize film business, went bankrupt in 2012 as competitors ate its future.

By Alex Denne

Primary source documenting the invention of digital photography at Kodak in 1975 and management's rejection—the canonical example of autophagy failure, where a company refused to cannibalize its profitable business and was instead consumed by competitors.

Key Findings from Sasson (2007)

  • First digital camera created December 1975: 8 pounds, 0.01 megapixels, 23 seconds per image
  • Sasson titled his 1976 demo 'Film-Less Photography'—management found it 'not popular'
  • Kodak held 90% U.S. film market, 85% camera market at the time of invention
  • 1978 patent granted; no public disclosure until 2001—26 years after invention
  • 1989: Sasson developed first DSLR at Kodak; company declined to sell it
  • 1997: Kodak market cap peaked at $31 billion; 2012: bankruptcy ($5.1B assets, $6.8B debt)
  • 2009: Sasson received National Medal of Technology and Innovation from President Obama

Related Mechanisms for Invention of the first digital camera

Related Organisations for Invention of the first digital camera

Related Organisms for Invention of the first digital camera

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