Journal Article

Absorbing Technological Spillovers: Simulations in an Evolutionary Framework

UWE CANTNER and ANDREAS PYKA

in Industrial and Corporate Change

Volume 7, issue 2, pages 369-397
Published in print June 1998 | ISSN: 0960-6491
Published online June 1998 | e-ISSN: 1464-3650 | DOI: https://dx.doi.org/10.1093/icc/7.2.369
Absorbing Technological Spillovers: Simulations in an Evolutionary Framework

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This paper offers a simulation analysis of firm strategies which differ by the degree of absorbing technical know-how generated elsewhere. It investigates the success of those firm strategies in a hetergeneous oligopoly setting in which firms compete by introducing new products and processes. Simulation results show that building up absorptive capacities tends to be a superior strategy in technologically heterogeneous environments. Reducing spillover effects leads to a slowdown of technological progress because cross-fertilization effects are of minor relevance. Where market competition is reduced the absorptive strategy tends to be only technologically superior.

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Subjects: Industrial History ; Business History ; Innovation ; Technological Change; Research and Development ; Industry Studies

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