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Strategic Innovation and Technology Adoption in an Evolving Industry Author info | Abstract | Publisher info | Download info | Related research | Statistics Darren Filson (Claremont Graduate University)
Richard T. Gretz (Claremont Graduate University)
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We introduce a racing model with multiple product generations, product innovation, spin-outs, and licensing. Industry conditions and innovation characteristics affect who wins the race and who markets the resulting product. Small firms market their innovations when they pioneer a new generation or improve quality in a young generation and license their innovations in mature generations. If old generation leaders ever market improvements in young generation goods, they do so early on. Leadership in mature generations persists. Tests on the rigid disk drive industry (1977-97) provide empirical support. The results have implications for antitrust policies and policies governing employee non-compete agreements.
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Paper provided by Claremont Colleges in its series Claremont Colleges Working Papers with number
2003-08.
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Date of creation: Mar 2003Date of revision:
Handle: RePEc:clm:clmeco:2003-08Contact details of provider: Postal: 500 E. 9th Street, Claremont, CA 91711 Phone: (909) 607-3041 Fax: (909) 621-8249 Web page: http://www.claremontmckenna.edu/econ/papers/ More information through EDIRC
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Keywords: industry dynamics ; employee mobility ; innovation market ; convenant not to compete ; spin-offs ; Other versions of this item:
Find related papers by JEL classification: K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy
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Darren Filson & Neal Masia, 2007.
"Effects of profit-reducing policies on firm survival, financial performance, and new drug introductions in the research-based pharmaceutical industry ,"
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