Publications
Publications
- summer 1997
- RAND Journal of Economics
An Empirical Exploration of a Technology Race
By: J. Lerner
Abstract
An extensive theoretical literature examines technological competition, and in particular whether leaders maintain their standing. These models, however, have received little support. Innovation is examined in the disk drive industry, an environment particularly conducive to identifying racing behavior. Strategic variables prove significant in explaining the decision to innovate. The patterns are in accord with Reinganum's (1989) work: firms that trail the leader innovate more. Controls are added for technological opportunity, financing constraints, and firm turnover. When firms manufacture drives for internal use or there are many entrants, and strategic actions may be less important, the effects are less pronounced.
Keywords
Citation
Lerner, J. "An Empirical Exploration of a Technology Race." RAND Journal of Economics 28, no. 2 (summer 1997): 228–247.