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Innovation, technological regimes and organizational selection in industry evolution: a 'history friendly model' of the DRAM industry

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  • Chang-Wook Kim
  • Keun Lee

Abstract

The paper explores the complex relationship among innovation, technological regimes and selection of the firms of different organizational forms in the evolution of an industry. For this purpose, this paper develops a 'history-friendly' model for the dynamic random access memory industry that replicates the history of the industry by simulation. The shift of industry dominance by small, specialized (SS) firms to large, diversified (LD) firms is explained by the technological regimes of the industry, characterized by low cumulativeness and strong impact of innovation on productivity increase. The simulation analysis also found the following causal relationship underlying the evolution of the industry. First, the stronger innovation impact in terms of productivity jump tends to enlarge the productivity difference among the incumbent firms and increase the speed of productivity catch-up by the LD firms. Second, the possibility of entry and eventual dominance by the LD firms increase when the innovation--productivity linkage is stronger and there is less cumulativeness in productivity determination. Copyright 2003, Oxford University Press.

Suggested Citation

  • Chang-Wook Kim & Keun Lee, 2003. "Innovation, technological regimes and organizational selection in industry evolution: a 'history friendly model' of the DRAM industry," Industrial and Corporate Change, Oxford University Press, vol. 12(6), pages 1195-1221, December.
  • Handle: RePEc:oup:indcch:v:12:y:2003:i:6:p:1195-1221
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    Cited by:

    1. Roberto Fontana & Lorenzo Zirulia, 2015. "“…then came Cisco, and the rest is history”: a ‘history friendly’ model of the Local Area Networking industry," Journal of Evolutionary Economics, Springer, vol. 25(5), pages 875-899, November.
    2. Grunsven Leo van & Witte Inge, 2012. "Emergence through branching and evolution," Zeitschrift für Wirtschaftsgeographie, De Gruyter, vol. 56(1-2), pages 168-184, October.
    3. repec:spr:eurasi:v:9:y:2019:i:1:d:10.1007_s40821-019-00121-0 is not listed on IDEAS
    4. repec:eee:respol:v:48:y:2019:i:3:p:649-664 is not listed on IDEAS
    5. Muscio, Alessandro & Nardone, Gianluca & Stasi, Antonio, 2012. "Perceived Technological Regimes: An Empirical Analysis of the Apulian Wine Industry," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144969, International European Forum on System Dynamics and Innovation in Food Networks.

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