Published on Mon, Jan 15, 2007 at 17:19 | Source : Moneycontrol.com
Updated at Tue, Jan 16, 2007 at 15:50
Like this story, share it with millions of investors on M3
0
Like this story, share it with millions of investors on M3
Capturing benefits from tomorrow's technology
It seems clear that firms with an existing R&D function are better able to use related outside research than firms without an R&D function. But can specific products also "absorb" a firm's knowledge of related technologies?
In this paper, I propose and examine a specific means by which firms' R&D experience may be helping firms to improve their current-technology products: Firms that conduct future-technology R&D may be better at adapting components from related future technologies for use in their current-technology products. I use patent data to test whether automobile carburetor suppliers with higher levels of future-technology R&D activity are better at adapting components from related future technologies for use in carburetors.
Daniel Snow is the Lumry Family Assistant Professor of Business Administration at Harvard Business School.
