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The Underemphasized Role of Established Firms as the

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  • Methe, David
  • Swaminathan, Anand
  • Mitchell, Will

Abstract

We argue that established firms, including industry incumbents and diversifying entrants, play vital all underemphasized roles as the sources of major innovations in many industries The study presents empirical evidence showing that established firms are often sources of major innovations in the telecommunications and medical sectors. We conduct an exploratory investigation of how variation in the types of technical and market change influence whether industry incumbents, diversifying entrants or nets companies are the sources of major innovations Copyright 1996 by Oxford University Press.

Suggested Citation

  • Methe, David & Swaminathan, Anand & Mitchell, Will, 1996. "The Underemphasized Role of Established Firms as the," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 5(4), pages 1181-1203.
    • Handle: RePEc:oup:indcch:v:5:y:1996:i:4:p:1181-1203
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    Cited by:

    1. Epicoco, Marianna, 2016. "Patterns of innovation and organizational demography in emerging sustainable fields: An analysis of the chemical sector," Research Policy, Elsevier, vol. 45(2), pages 427-441.
    2. Rajshree Agarwal & Constance E. Helfat, 2009. "Strategic Renewal of Organizations," Organization Science, INFORMS, vol. 20(2), pages 281-293, April.
    3. Mahka Moeen, 2017. "Entry into Nascent Industries: Disentangling a Firm's Capability Portfolio at the Time of Investment Versus Market Entry," Strategic Management Journal, Wiley Blackwell, vol. 38(10), pages 1986-2004, October.
    4. M. Lourdes Sosa, 2009. "Application-Specific R& D Capabilities and the Advantage of Incumbents: Evidence from the Anticancer Drug Market," Management Science, INFORMS, vol. 55(8), pages 1409-1422, August.
    5. Keith Pavitt, 2001. "Can the Large Penrosian Firm cope with the Dynamics of Technology?," SPRU Working Paper Series 68, SPRU - Science Policy Research Unit, University of Sussex Business School.
    6. Dennis W. Carlton & Robert H. Gertner, 2003. "Intellectual Property, Antitrust, and Strategic Behavior," NBER Chapters, in: Innovation Policy and the Economy, Volume 3, pages 29-60, National Bureau of Economic Research, Inc.
    7. Keith Pavitt, 2003. "The Process of Innovation," SPRU Working Paper Series 89, SPRU - Science Policy Research Unit, University of Sussex Business School.
    8. F. Ted Tschang & Gokhan Ertug, 2016. "New Blood as an Elixir of Youth: Effects of Human Capital Tenure on the Explorative Capability of Aging Firms," Organization Science, INFORMS, vol. 27(4), pages 873-892, August.

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