Dynamic Competition in Technological Investments: An Empirical Examination of the LCD Panel Industry
| Title: | Dynamic Competition in Technological Investments: An Empirical Examination of the LCD Panel Industry |
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| Format: | Journal Article |
| Publication Date: | November 2011 |
| Description: | 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. |
| External Contributors: | Jeongsik Lee, Young-Mo Lim |
| Citation: | Lee, Jeongsik, Byung-Cheol Kim, and Young-mo Lim. "Dynamic Competition in Technological Investments: An Empirical Examination of the LCD Panel Industry." International Journal of Industrial Organization 29.6 (2011): 718-728. |
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