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Entrepreneurial Spin-Outs and Vanishing Technological Trajectory: Laser Diodes in the U.S. and Japan

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  • Shimizu, Hiroshi
  • Wakutsu, Naohiko

Abstract

By exploring the patterns of laser-diode technological development in the U.S. and Japan and theoretically examining market conditions and institutions that promote entrepreneurial spin-outs from a parental company, this study reveals how the existence and absence of entrepreneurial spin-out influence the ways in which technological trajectories emerge. It shows that vibrant entrepreneurial spin-out could hinder technological development, since the cumulative effects of incremental innovations on the technological trajectories could vanish if many firms spun out to target untapped sub-markets.

Suggested Citation

  • Shimizu, Hiroshi & Wakutsu, Naohiko, 2014. "Entrepreneurial Spin-Outs and Vanishing Technological Trajectory: Laser Diodes in the U.S. and Japan," IIR Working Paper 13-21, Institute of Innovation Research, Hitotsubashi University.
    • Handle: RePEc:hit:iirwps:13-21
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    References listed on IDEAS

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    Keywords

    Innovation; Entrepreneurial Spin-Outs; Technological Trajectory; R&D Competition; Sub-markets; General Purpose Technology;
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