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Innovation Dynamics And Endogenous Adjustment In The Telecommunications Industry

Author

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  • Donald Hicks

Abstract

Patterned innovation dynamics - investment-mix shifts and inter-organizational alliances -are examined for their roles in facilitating accelelating technical advance in the telecom industry since the mid-1970s. While internal investment shifts favoring R&D and declining rates of capital recovery were ubiquitous across the period, this was especially so for telecom equipment suppliers. Comparative analyses suggest that such innovation investment strategies have been of less benefit to telecom firms than to producers in nearly any other major manufacturing sector. Trends in organizational innovation in the form of alliance fonnation are also reported. The challenges these innovation dynamics pose for neoclassical models are discussed.

Suggested Citation

  • Donald Hicks, 2001. "Innovation Dynamics And Endogenous Adjustment In The Telecommunications Industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(2-3), pages 141-168.
    • Handle: RePEc:taf:ecinnt:v:10:y:2001:i:2-3:p:141-168
    DOI: 10.1080/10438590100000007
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    Cited by:

    1. Gupta, Abhishek & Pawar, Kulwant S. & Smart, Palie, 2007. "New product development in the pharmaceutical and telecommunication industries: A comparative study," International Journal of Production Economics, Elsevier, vol. 106(1), pages 41-60, March.

    More about this item

    Keywords

    Telecommunications industry; R&D investment; Capital investment; Innovation; Strategic alliances; Endogenous growth; JEL Classification: 030-33; LI0; L20; L63;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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