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Civilian Diversification, Learning, and Institutional Change: Growth through Knowledge and Power

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  • J M Feldman

    (Centre for Innovation and Entrepreneurship, Linköping University, S-581 83 Linköping, Sweden)

Abstract

In this paper I argue that large defense firms can successfully diversify into civilian markets if innovators gain complementary knowledge and power to promote new civilian innovations. For such firms, diversification is neither easy nor impossible, but requires that new product teams overcome barriers based on bureaucracy, changing managerial regimes, and state policies that discourage diversification. Political barriers to diversification, based on managerial choices and government policies, exist both within and outside the firm. Although specialization hurdles based on knowledge can be overcome, political barriers are more challenging, and limit the rate of civilian spin-offs in large military hub firms.

Suggested Citation

  • J M Feldman, 1999. "Civilian Diversification, Learning, and Institutional Change: Growth through Knowledge and Power," Environment and Planning A, , vol. 31(10), pages 1805-1824, October.
    • Handle: RePEc:sae:envira:v:31:y:1999:i:10:p:1805-1824
    DOI: 10.1068/a311805
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    References listed on IDEAS

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    1. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    2. Granstrand, Ove & Sjolander, Soren, 1990. "The acquisition of technology and small firms by large firms," Journal of Economic Behavior & Organization, Elsevier, vol. 13(3), pages 367-386, June.
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