Innovation and Profitability in the Computer Industry

Christian Genthon
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Christian Genthon: University Pierre Mendès France

Chapter 10 in Powerful Finance and Innovation Trends in a High-Risk Economy, 2008, pp 167-182 from Palgrave Macmillan

Abstract: Abstract The purpose of this chapter is to explore the relationship between innovation and profitability by analysing the computer industry over an extended period of time (20 years). The aim is to identify the determinants of innovation, taking this particular industry as an example. To do so, our first section will analyse the industry’s industrial dynamics, while the second will present conclusive research regarding the determinants of R&D. We will then empirically test the predictions generated by these two analytical frameworks. We find that the intensity of R&D expenditure bears no relation to profitability. But the main findings of this chapter are that the determinants of innovation can differ within the same industry, at different times.

Keywords: Data Envelopment Analysis; Ordinary Little Square; Vertical Integration; Generalize Little Square; Incumbent Firm (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-58409-9_11

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DOI: 10.1057/9780230584099_11

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