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Can Companies Maintain Their Initial Innovation Thrust? A Study of the PC Software Industry

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  • Prusa, Thomas J
  • Schmitz, James A, Jr

Abstract

This paper identifies a number of patterns in the sales of products within firms and over time in the PC software industry. For example, the authors find that a firm's initial product tends to be its most successful. There is also some indication that a firm's initial product sells better than its second, its second better than its third, and so on. The authors sketch some simple models consistent with these results. Copyright 1994 by MIT Press.

Suggested Citation

  • Prusa, Thomas J & Schmitz, James A, Jr, 1994. "Can Companies Maintain Their Initial Innovation Thrust? A Study of the PC Software Industry," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 523-540, August.
  • Handle: RePEc:tpr:restat:v:76:y:1994:i:3:p:523-40
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    Cited by:

    1. Satyajit Chatterjee & Esteban Rossi‐Hansberg, 2012. "Spinoffs And The Market For Ideas," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(1), pages 53-93, February.
    2. Wagner, Rodrigo & Zahler, Andrés, 2015. "New exports from emerging markets: Do followers benefit from pioneers?," Journal of Development Economics, Elsevier, vol. 114(C), pages 203-223.
    3. Boyan Jovanovic & Peter L. Rousseau, 2014. "Extensive and Intensive Investment over the Business Cycle," Journal of Political Economy, University of Chicago Press, vol. 122(4), pages 863-908.
    4. April Mitchell Franco & Darren Filson, 2000. "Knowledge Diffusion through Employee Mobility," Claremont Colleges Working Papers 2000-61, Claremont Colleges.
    5. Iain M. Cockburn & Megan J. MacGarvie, 2011. "Entry and Patenting in the Software Industry," Management Science, INFORMS, vol. 57(5), pages 915-933, May.
    6. Boyan Jovanovic & Chung-Yi Tse, 2010. "Entry and Exit Echoes," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(3), pages 514-536, July.
    7. Solomon Tadesse, 2005. "Financial Development and Technology," William Davidson Institute Working Papers Series wp749, William Davidson Institute at the University of Michigan.
    8. Jürgen Bitzer, 1997. "The Computer Software Industry in East and West: Do Eastern European Countries Need a Specific Science and Technology Policy?," Discussion Papers of DIW Berlin 149, DIW Berlin, German Institute for Economic Research.
    9. Greenstein, Shane, 2010. "Innovative Conduct in Computing and Internet Markets," Handbook of the Economics of Innovation, Elsevier.
    10. Gilbert, Brett Anitra, 2012. "Creative destruction: Identifying its geographic origins," Research Policy, Elsevier, vol. 41(4), pages 734-742.
    11. Zahra, Shaker A. & Bogner, William C., 2000. "Technology strategy and software new ventures' performance: Exploring the moderating effect of the competitive environment," Journal of Business Venturing, Elsevier, vol. 15(2), pages 135-173, March.
    12. Lerner, Josh, 2006. "The new new financial thing: The origins of financial innovations," Journal of Financial Economics, Elsevier, vol. 79(2), pages 223-255, February.
    13. Josh Lerner, 2004. "The New New Financial Thing: The Sources of Innovation Before and After State Street," NBER Working Papers 10223, National Bureau of Economic Research, Inc.

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