ISSN:
1432-1386
Keywords:
Technometrics
;
Technological excellence
;
Innovation
;
Schumpeter
;
Evolutionary models
;
O30
;
O33
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract What is the relation between the average level of complexity that characterizes a product's technology, and the degree of diversity of that technology across rival firms? Evolutionary theories of innovation and technical advance are consistent with either a direct or an inverse relation. The issue thus becomes an empirical one. This paper uses a unique database containing detailed quantitative data on the specifications of 12 high-tech product groups for the U.S., Japan and selected European countries, for 1982, for both products and processes. It is found that the more complex the technology, the less diverse is the technology of rival firms that produce the product. This is consistent with the following evolutionary process: Economies of scale and scope inherent in high-level technologies require firms who adopt them to dispose entirely of older technologies, in order to remain competitive; at the same time, older, simpler technologies continue to exist and permit wide diversities among firms who pursue “niche” market strategies.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF01236407
Permalink
