Dynamic competition in technological investments: An empirical examination of the LCD panel industry

B-Tier
Journal: International Journal of Industrial Organization
Year: 2011
Volume: 29
Issue: 6
Pages: 718-728

Authors (3)

Lee, Jeongsik (not in RePEc) Kim, Byung-Cheol (University of Alabama-Tuscaloo...) Lim, Young-Mo (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:indorg:v:29:y:2011:i:6:p:718-728
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-25