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Absorbing Technological Spillovers: Simulations in an Evolutionary Framework

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  • Cantner, Uwe
  • Pyka, Andreas

Abstract

This paper offers a simulation analysis of firm strategies which differ by the degree of absorbing technical know-how generated elsewhere. It investigates the success of those firm strategies in a heterogeneous oligopoly setting in which firms compete by introducing new products and processes. Simulation results show that building up absorptive capacities tends to be a superior strategy in technologically heterogeneous environments. Reducing spillover effects leads to a slowdown of technological progress because cross-fertilization effects are of minor relevance. Where markets competition is reduced, the absorptive strategy tends to be only technologically superior. Copyright 1998 by Oxford University Press.

Suggested Citation

  • Cantner, Uwe & Pyka, Andreas, 1998. "Absorbing Technological Spillovers: Simulations in an Evolutionary Framework," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 7(2), pages 369-397, June.
    • Handle: RePEc:oup:indcch:v:7:y:1998:i:2:p:369-97
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