Logo image
The Relationship between Innovation and Market Share: Evidence from the Global LCD Industry
Journal article   Peer reviewed

The Relationship between Innovation and Market Share: Evidence from the Global LCD Industry

Jeongsik Lee and Byung-Cheol Kim
Industry and innovation, v 20(1), pp 1-21
01 Jan 2013

Abstract

innovation technology investment Technological capability firm size LCD industry
We investigate the impact of technological capability on firm market share using technology investment data in the global thin-film-transistor liquid-crystal-display panel industry from 1999 to 2007. The Arellano-Bond estimation of the dynamic panel model indicates that prior technological capability is positively correlated with current market share. The magnitude of this effect appears economically substantial: an improvement of technological capability by one standard deviation implied a permanent increase of 2.6 percent-point in quarterly market share, a return tantamount to $470 million in 2007 sales. The Granger test reveals that technological capability helps to predict future market share, but that the inverse is not true.

Metrics

21 Record Views
17 citations in Scopus

Details

UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#9 Industry, Innovation and Infrastructure

InCites Highlights

Data related to this publication, from InCites Benchmarking & Analytics tool:

Web of Science research areas
Economics
Management
Logo image