Chris
After getting my neon chilis clock I started looking at all neon stuff. The sequencers, flashers etc kind of work the same.
You have a small motor that spins a cam. the cam is connected to electrical contacts that are like an old telegraph.
the cam spins, raises one of the contacts to the power and the lights connected to that contact come on. the cam raises the next contact in line, those lights come on after the first lights go off.
As they light up one after another, your mind sees them as chasing each other.
You could have all the lights hooked up to this where it blinks all of them off and on at the same time(there are Xmas wall plugs that do this too)
Think of it as pistons in an engine firing each cylinder at a time.