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Institutions, Inertia, and Changing Industrial Leadership

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Author Info
Paul L. Robertson (University College, University of New South Wales)
Richard N. Langlois (The University of Connecticut)

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Abstract

Institutional factors, especially those embodied in capabilities and routines, can both improve the ability of a firm to exploit an existing technology and make it more difficult to innovate by generating an inertia that is hard to overcome. As a result, periods of technological change are often relatively short and dynamic in comparison to lengthy periods of consolidation in which firms gain full mastery over innovations. Not all organizations are equally well equipped to adapt to change, however, and firms that are adept at using an existing technology may have fewer of the capabilities required to cope with innovation than a new entrant or a firm that was less successful under the old regime. When this is true, a change in industrial leadership is probable, with the hitherto dominant firms becoming either followers or leaving the industry altogether because they are no longer competitive.

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Publisher Info
Paper provided by EconWPA in its series Industrial Organization with number 9406005.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 34 pages
Date of creation: 30 Jun 1994
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Handle: RePEc:wpa:wuwpio:9406005

Note: 34 pages. Forthcoming in Industrial and Corporate Change
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Web page: http://129.3.20.41

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L - Industrial Organization

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  1. Paul L. Robertson & David Jacobson & Richard N. Langlois, 2008. "Innovation Processes and Industrial Districts," Working papers 2008-03, University of Connecticut, Department of Economics. [Downloadable!]
  2. Paul L. Robertson & Richard N. Langlois, 1994. "Innovation, Networks, and Vertical Integration," Industrial Organization 9406006, EconWPA. [Downloadable!]
    Other versions:
  3. Kazuhiro Asakawa & Ashok Som, 2008. "Internationalization of R&D in China and India: Conventional wisdom versus reality," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 375-394, September. [Downloadable!] (restricted)
  4. John H. Finch, 2000. "Is post-Marshallian economics an evolutionary research tradition?," European Journal of the History of Economic Thought, Taylor and Francis Journals, vol. 7(3), pages 377-406, September. [Downloadable!] (restricted)
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