This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

I Like The Way You Move : An Empirical Investigation into the Mechanisms Behind First Mover and Follower Strategies

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Sofka, Wolfgang
Schmidt, Tobias

Additional information is available for the following registered author(s):

Abstract

There appears to be an ambivalent dimension in innovation strategies: timing. When is an innovation ready for the market or when is the market ready for the innovation? This paper empirically investigates the determinants of a firm?s decision to become a first mover or a follower in innovation strategies. Much of theoretical and empirical work has focused on whether first mover strategies pay off or not. Here we take a different approach by analysing the determinants that lead companies to opt for either a first mover or a follower strategy. One of this paper?s major goals is to distinguish between firm and industry specific effects on this particular strategic choice. We estimate our model using the most recent data from the German innovation survey of 2003. This dataset allows us to identify deliberate followers rather than outstripped first movers. One of our main findings is that firms choosing a first mover strategy operate in industries with intensive knowledge exchange and further leverage this advantage through excellent internal absorptive capacities. Followers, though, compete by way of their operational excellence for streamlining processes and cutting costs. Hence, we argue that neither of these two innovation strategies is per se superior to the other. --

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://econstor.eu/bitstream/10419/24094/1/dp0487.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 04-87.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 2004
Date of revision:
Handle: RePEc:zbw:zewdip:2891

Contact details of provider:
Postal: L 7,1; D - 68161 Mannheim
Phone: +49/621/1235-01
Fax: +49/621/1235-224
Email:
Web page: http://www.zew.de/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (ZBW - German National Library for Economics).

Related research
Keywords: innovation strategy; first mover; bivariate probit;

Other versions of this item:

Find related papers by JEL classification:
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. S.A. Lippman & R.P. Rumelt, 1982. "Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 418-438, Autumn. [Downloadable!] (restricted)
  2. Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September. [Downloadable!]
  3. Stephen Shmanske, 2004. "Market Preemption and Entry Deterrence: Evidence from the Golf Course Industry," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 11(1), pages 55-68, February. [Downloadable!] (restricted)
  4. Gal-Or, Esther, 1985. "First Mover and Second Mover Advantages," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(3), pages 649-53, October. [Downloadable!] (restricted)
  5. Tobias Schmidt, 2005. "Knowledge Flows and R&D Co-operation: Firm-level Evidence from Germany," Development and Comp Systems 0506006, EconWPA. [Downloadable!]
    Other versions:
  6. Bresnahan, Timothy F, 1985. "Post-entry Competition in the Plain Paper Copier Market," American Economic Review, American Economic Association, vol. 75(2), pages 15-19, May. [Downloadable!] (restricted)
  7. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September. [Downloadable!] (restricted)
  8. Cremers, Katrin, 2004. "Determinants of Patent Litigation in Germany," ZEW Discussion Papers 04-72, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  9. A. M. Spence, 1981. "The Learning Curve and Competition," Bell Journal of Economics, The RAND Corporation, vol. 12(1), pages 49-70, Spring. [Downloadable!] (restricted)
  10. Alan Bryman, 1997. "Animating the Pioneer versus Late Entrant Debate: An Historic Case Study," Journal of Management Studies, Blackwell Publishing, vol. 34(3), pages 415-438, 05. [Downloadable!] (restricted)
  11. Fudenberg, Drew & Tirole, Jean, 1984. "The Fat-Cat Effect, the Puppy-Dog Ploy, and the Lean and Hungry Look," American Economic Review, American Economic Association, vol. 74(2), pages 361-66, May. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Birgit Aschhoff & Tobias Schmidt, 2008. "Empirical Evidence on the Success of R&D Cooperation—Happy Together?," Review of Industrial Organization, Springer, vol. 33(1), pages 41-62, August. [Downloadable!] (restricted)
    Other versions:
  2. Tobias Schmidt, 2005. "Absorptive Capacity – One Size Fits All? A Firm-level Analysis of Absorptive Capacity for Different Kinds of Knowledge," Industrial Organization 0510010, EconWPA. [Downloadable!]
    Other versions:
  3. Faria, Pedro & Schmidt, Tobias, 2007. "International Cooperation on Innovation: Empirical Evidence for German and Portuguese Firms," ZEW Discussion Papers 07-060, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  4. Aerts, Kris & Schmidt, Tobias, 2006. "Two for the price of one? : On additionality effects of R&D subsidies ; a comparison between Flanders and Germany," ZEW Discussion Papers 06-63, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  5. Wolfgang Sofka, 2005. "Global Idea Sourcing - An empirical investigation into the mechanisms behind the usage of foreign business sources for innovation," Industrial Organization 0509004, EconWPA. [Downloadable!]
    Other versions:
  6. Wolfgang Sofka & Joerg Zimmermann, 2005. "There is no Place Like Home: A Strategic Framework to Overcome Liability of Foreignness in the German Car Market," Industrial Organization 0512003, EconWPA. [Downloadable!]
    Other versions:
  7. Tobias Schmidt & Wolfgang Sofka, 2005. "Lost in Translation - Empirical Evidence for Liability of Foreignness as Barriers to Knowledge Spillovers," Industrial Organization 0512012, EconWPA. [Downloadable!]
  8. Schmidt, Tobias, 2006. "An Empirical Analysis of the Effects of Patents and Secrecy on Knowledge Spillovers," ZEW Discussion Papers 06-48, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
Statistics
Access and download statistics

Did you know? You too can volunteer for RePEc, for example by encouraging others to register as authors.

This page was last updated on 2009-12-8.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.