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Firm R&D Behavior and Evolving Technology in Established Industries

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  • Anne Marie Knott

    (Olin School of Business, Washington University, St. Louis, Missouri 63130)

  • Hart E. Posen

    (Stephen M. Ross School of Business, University of Michigan, Ann Arbor, Michigan 48109)

Abstract

One of the key mechanisms of firms' strategic renewal is R&D, and a key driver of the intensity of R&D is industry context. A number of theories develop propositions linking industry factors to firm R&D behavior, but these theories lack consensus. To date, empirical tests have been unable to resolve the competing predictions because of lack of time-varying measures of technology. We create new measures for technology and then conduct a test of the competing theories. Our results indicate that the data best match a model of innovative behavior in which firms invest in R&D principally to regain eroded advantage rather than to pursue the new frontier.

Suggested Citation

  • Anne Marie Knott & Hart E. Posen, 2009. "Firm R&D Behavior and Evolving Technology in Established Industries," Organization Science, INFORMS, vol. 20(2), pages 352-367, April.
    • Handle: RePEc:inm:ororsc:v:20:y:2009:i:2:p:352-367
    DOI: 10.1287/orsc.1070.0332
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    10. Rajshree Agarwal & Constance E. Helfat, 2009. "Strategic Renewal of Organizations," Organization Science, INFORMS, vol. 20(2), pages 281-293, April.
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    16. Phanish Puranam & Harbir Singh & Saikat Chaudhuri, 2009. "Integrating Acquired Capabilities: When Structural Integration Is (Un)necessary," Organization Science, INFORMS, vol. 20(2), pages 313-328, April.
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