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An empirical study of technological leadership and persistence in product innovation

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  • Roberto Fontana
  • Diana Moriniello
  • Andrea Vezzulli

Abstract

We study how technological leadership affects persistence in product innovation. Relying upon a database of 1818 products marketed between 1990 and 1999 by 265 firms active in three markets of the Local Area Network (LAN) industry we first construct a measure of technological leadership and then relate this measure to persistence in innovation. We find that leaders are systematically more persistent innovators than laggards. We also find that leaders in one market can also systematically innovate in a related and adjacent market. Finally, we find a positive correlation between prior patenting activity and persistence in product innovation.

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  • Roberto Fontana & Diana Moriniello & Andrea Vezzulli, 2015. "An empirical study of technological leadership and persistence in product innovation," Working Papers Department of Economics 2015/10, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
  • Handle: RePEc:ise:isegwp:wp102015
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    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.

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