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On Technology Competition: A Formal Analysis Of The 'Sailing-Ship Effect'

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  • Nicola De Liso
  • Giovanni Filatrella

Abstract

One of the key features of our economies consists of the coexistence of different technologies supplying similar products and services. We often observe that an old technology is improved when a new one appears; behind this process of improvement often lies an intentional research activity. There thus begins a competition between the two technologies whose performances are improved via R&D. We focus our attention on this competition process and supply a formal model, based on the optimization of R&D expenditure of both technologies, which can describe the dynamics of the delayed overtaking of the new technology over the old one.

Suggested Citation

  • Nicola De Liso & Giovanni Filatrella, 2008. "On Technology Competition: A Formal Analysis Of The 'Sailing-Ship Effect'," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(6), pages 593-610.
  • Handle: RePEc:taf:ecinnt:v:17:y:2008:i:6:p:593-610
    DOI: 10.1080/10438590701560360
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    References listed on IDEAS

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    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
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    Cited by:

    1. G. Filatrella & N. De Liso, 2019. "Predicting one type of technological motion? A nonlinear map to study the 'sailing-ship' effect," Papers 1912.11250, arXiv.org.
    2. Walrave, Bob & Raven, Rob, 2016. "Modelling the dynamics of technological innovation systems," Research Policy, Elsevier, vol. 45(9), pages 1833-1844.
    3. Berggren, Christian & Magnusson, Thomas & Sushandoyo, Dedy, 2015. "Transition pathways revisited: Established firms as multi-level actors in the heavy vehicle industry," Research Policy, Elsevier, vol. 44(5), pages 1017-1028.
    4. Nicola De Liso, 2001. "Tecnologie dellÕinformazione e della comunicazione, terziarizzazione e nuova divisione del lavoro digitale," Moneta e Credito, Economia civile, vol. 54(216), pages 425-459.
    5. Cantner, Uwe & Vannuccini, Simone, 2021. "Pervasive technologies and industrial linkages: Modeling acquired purposes," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 386-399.

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