On the Shoulders of Giants: Co-location with Dominant Firms in the Emerging Fiber Optics Industry

Donald Hatfield, William Lamb and Linda Tegarden

Industry and Innovation, 2007, vol. 14, issue 5, 445-460

Abstract: In this study we investigate the location choices of start-ups and established firms relative to dominant firms in the US fiber optics industry from 1976 to 1994. We test the propensity to co-locate with dominant firms and whether proximity to a dominant firm impacts the strategic choices made by start-ups and established firms. Contrary to our predictions, we find that both start-ups and established firms are equally likely to co-locate with dominant firms. We also find that start-ups exhibit greater new product adoption rates and greater product-line breadth than established firms. This implies that start-ups are relatively more likely to realize greater strategic gains with entry into emerging markets.

Keywords: Emerging technology; strategic location choice; dominant and startup firms; innovations (search for similar items in EconPapers)
Date: 2007
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DOI: 10.1080/13662710701711273

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