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Innovation And Reliability Strategies In The Defense, Space And Semiconductor Industries: A Comparative Analysis

Author

Listed:
  • VICTOR DOS SANTOS PAULINO

    (Toulouse Business School, Boulevard Lascrosses, 20, 31068, Toulouse, France)

  • MICHEL CALLOIS

    (University of Nice Sophia Antipolis, Rue Albert Einstein, 250, 06560, Valbonne, France)

Abstract

The objective of this paper is to understand why the pace of technical change has been slower in the defense and space industries than in semiconductors. To answer this question, we adopt an inductive method that exploits historical facts and patent statistics to provide empirical data. Basing our rationale on the appropriation and structural inertia arguments, we show that the constraints imposed by reliability in the defense and space industries impedes the appropriation of supra profits from innovation and thus slows the pace of technical change. The main managerial implication of this result is that technical inertia contributes to competitive success when the reliability constraint reaches high levels.

Suggested Citation

  • Victor Dos Santos Paulino & Michel Callois, 2010. "Innovation And Reliability Strategies In The Defense, Space And Semiconductor Industries: A Comparative Analysis," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(05), pages 795-821.
    • Handle: RePEc:wsi:ijimxx:v:14:y:2010:i:05:n:s136391961000288x
    DOI: 10.1142/S136391961000288X
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    References listed on IDEAS

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    1. Ruttan, Vernon W., 2006. "Is War Necessary for Economic Growth?: Military Procurement and Technology Development," OUP Catalogue, Oxford University Press, number 9780195188042.
    2. Giovanni Dosi, 1984. "Technical Change and Industrial Transformation," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-17521-5, September.
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