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Technological Diffusion Patterns and their Effects on Industrial Dynamics

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  • Machiel van Dijk
  • Önder Nomaler
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    Abstract

    By focussing on cumulativeness and spillover effects of technological knowledge, theories on technological regimes are predominantly supply side oriented in explaining industrial dynamics. This paper introduces demand side considerations as an additional explanation for industrial dynamics. Given variations in consumer preferences over quality and network sizes of technologies, and different degrees of compatibility between succeeding technologies, we investigate how the resulting differences in the timing and frequency of new technology adoptions effect the industrial dynamics. The simulation results of the model indeed suggest a relationship between different patterns of new technology adoptions and the dynamics of the firm population.

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    File URL: http://www3.druid.dk/wp/20000006.pdf
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    Bibliographic Info

    Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 00-6.

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    Date of creation: 2000
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    Handle: RePEc:aal:abbswp:00-6

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    Web page: http://www.druid.dk/

    Related research

    Keywords: tecnological knowledge; demand; consumer preferences; industrial dynamics;

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    1. Evans, David S., 1986. "Tests of Alternative Theories of Firm Growth," Working Papers, C.V. Starr Center for Applied Economics, New York University 86-36, C.V. Starr Center for Applied Economics, New York University.
    2. Silverberg, Gerald & Lehnert, Doris, 1993. "Long waves and 'evolutionary chaos' in a simple Schumpeterian model of embodied technical change," Structural Change and Economic Dynamics, Elsevier, Elsevier, vol. 4(1), pages 9-37, June.
    3. Shy, Oz, 1996. "Technology revolutions in the presence of network externalities," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 14(6), pages 785-800, October.
    4. Breschi, Stefano & Malerba, Franco & Orsenigo, Luigi, 2000. "Technological Regimes and Schumpeterian Patterns of Innovation," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 110(463), pages 388-410, April.
    5. Silverberg, Gerald & Verspagen, Bart, 1994. "Collective Learning, Innovation and Growth in a Boundedly Rational, Evolutionary World," Journal of Evolutionary Economics, Springer, Springer, vol. 4(3), pages 207-26, September.
    6. Evans, David S., 1986. "The Relationship Between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries," Working Papers, C.V. Starr Center for Applied Economics, New York University 86-33, C.V. Starr Center for Applied Economics, New York University.
    7. Geroski, Paul A, 1999. "The Growth of Firms in Theory and in Practice," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2092, C.E.P.R. Discussion Papers.
    8. Malerba, Franco & Orsenigo, Luigi, 1996. "Schumpeterian patterns of innovation are technology-specific," Research Policy, Elsevier, Elsevier, vol. 25(3), pages 451-478, May.
    9. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, Econometric Society, vol. 50(3), pages 649-70, May.
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    Cited by:
    1. Coad, Alex, 2007. "Testing the principle of `growth of the fitter': The relationship between profits and firm growth," Structural Change and Economic Dynamics, Elsevier, Elsevier, vol. 18(3), pages 370-386, September.

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