Diversity of Innovative Strategy as a Source of Technological Performance

Patrick Llerena and Vanessa Oltra

No 00-1, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

Abstract: This paper explores the impact of diversity of innovative strategies of firms upon the industrial dynamics through a micro-simulation model. We consider two types of firms each one being characterised by a specific innovative strategy. Basically we assume that some cumulative firms adopt an internal learning by searching strategy, while noncumulative firms adopt an external learning strategy aiming at absorbing external sources of knowledge. The results show that the co-existence of the two types of firms leads to an oligopolistic structure characterised by asymmetries in the size of firms and high technological performances. Thus the diversity of innovative strategies generates a diversity in firms market shares and is a source of dynamic efficiency in the long run.

Keywords: Industrial dynamics; innovation; diversity; learning (search for similar items in EconPapers)
JEL-codes: C63 L1 O32 (search for similar items in EconPapers)
Date: 2000
New Economics Papers: this item is included in nep-ino and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Journal Article: Diversity of innovative strategy as a source of technological performance (2002)
Working Paper: Diversity of innovative strategy as a source of technological performance (2002)
Working Paper: Diversity of innovative strategy as a source of technological performance (2001)
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