Strategic Innovation and Technology Adoption in an Evolving Industry

Darren Filson () and Richard T. Gretz ()

Claremont Colleges Working Papers from Claremont Colleges

Abstract: We introduce a racing model with multiple product generations, product innovation, spin-outs, and licensing. Industry conditions and innovation characteristics affect who wins the race and who markets the resulting product. Small firms market their innovations when they pioneer a new generation or improve quality in a young generation and license their innovations in mature generations. If old generation leaders ever market improvements in young generation goods, they do so early on. Leadership in mature generations persists. Tests on the rigid disk drive industry (1977-97) provide empirical support. The results have implications for antitrust policies and policies governing employee non-compete agreements.

Keywords: industry dynamics; employee mobility; innovation market; convenant not to compete; spin-offs (search for similar items in EconPapers)
JEL-codes: K31 L41 L63 O31 O38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent, nep-ino and nep-law
Date: 2003-03
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Related works:
Journal Article: Strategic innovation and technology adoption in an evolving industry (2004)
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Persistent link: http://EconPapers.repec.org/RePEc:clm:clmeco:2003-08

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