Journal article
Dynamic competition in technological investments: An empirical examination of the LCD panel industry
International journal of industrial organization, v 29(6), pp 718-728
01 Nov 2011
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
When are technological laggards more likely to try to catch up with leaders? We offer empirical evidence on firm-level data of plant investments in the TFT-LCD panel industry, where technological competition has been intense and dynamic. We find that the followers' level of technology has a non-monotonic effect on technology-improving investments, with intermediate followers the most apt to invest in catch-ups. This result is a puzzle given the existing theory on technology race. We also find that followers' catch-up investments increase with the capacity of the leader that employs the state-of-the-art technology. These results are robust to variations in specification and alternative accounts of effects. We discuss our findings and contributions in light of the technology race literature.
► We offer evidence on dynamic technology competition in the TFT-LCD panel industry. ► Followers with medium technology indexes are most apt to make catchup investments. ► This supports action–reaction rather than increasing dominance as race pattern. ► Catchup investments also increase with industry's cutting-edge technology capacity. ► This finding confirms that followers strive to catch up not to fall too far behind.
Metrics
Details
- Title
- Dynamic competition in technological investments: An empirical examination of the LCD panel industry
- Creators
- Jeongsik Lee - Georgia Institute of TechnologyByung-Cheol Kim - Georgia Institute of TechnologyYoung-Mo Lim - Korea Economic Research Institute
- Publication Details
- International journal of industrial organization, v 29(6), pp 718-728
- Publisher
- Elsevier
- Grant note
- Georgia Institute of Technology Kauffman Foundation/Georgia Research Alliance
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Management
- Web of Science ID
- WOS:000297431500008
- Scopus ID
- 2-s2.0-80054678815
- Other Identifier
- 991021881511804721
UN Sustainable Development Goals (SDGs)
This publication has contributed to the advancement of the following goals:
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Industry collaboration
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Economics