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Industrial Development and Technology Accumulation: Similar and Differentiated Technologies in China’s Robot Cleaner Industry

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  • KIMURA,Koichiro

Abstract

This study examines the characteristics of similar and differentiated technologies in an industry to investigate firms’ technology accumulation patterns. Cosine similarity compares technology positions generated by the patent applications of two major Chinese firms in the robot cleaner industry. The analysis shows that as the number of patent applications increases, firms tend to accumulate standard technologies for the basic performance of products while accumulating differentiated technologies for specific products and functions. The combination of standard and specific technologies has the advantage of creating barriers to entry, but the disadvantage of being slower to adapt to changes in the business environment.

Suggested Citation

  • KIMURA,Koichiro, 2024. "Industrial Development and Technology Accumulation: Similar and Differentiated Technologies in China’s Robot Cleaner Industry," IDE Discussion Papers 922, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper922
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    File URL: https://ir.ide.go.jp/record/2000865/files/IDP000922_001.pdf
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    References listed on IDEAS

    as
    1. Nicholas Bloom & Mark Schankerman & John Van Reenen, 2013. "Identifying Technology Spillovers and Product Market Rivalry," Econometrica, Econometric Society, vol. 81(4), pages 1347-1393, July.
    2. Koichiro Kimura, 2022. "How do firms specialize? The technological positions of Chinese robotics firms," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 20(4), pages 339-353, October.
    3. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    4. Forman, Chris & van Zeebroeck, Nicolas, 2019. "Digital technology adoption and knowledge flows within firms: Can the Internet overcome geographic and technological distance?," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    5. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    differentiation|patent application|similarity|standard;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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