A Schumpeterian approach to entry barrier and firm profitability: cycle time of technology

IF 3.2 3区经济学 Q1 ECONOMICS

Economics of Innovation and New Technology Pub Date : 2022-05-01 DOI:10.1080/10438599.2022.2067150

Keun Lee, Sunghoon Lee

引用次数: 1

Abstract

ABSTRACT Entry barrier has long been considered as a major determinant of firm profitability. Although a less competitive market structure has been commonly known as an indicator of an entry barrier, pieces of past empirical evidence are mixed. Moreover, technological factors, such as R&D intensity, have also been considered. However, no satisfactory empirical analysis has been made, mostly due to the lack of a suitable proxy variable that can reflect the technological environment of a sector. This study addresses this problem by trying a new proxy variable, cycle time of technologies (CTT), and shows, using the US firm data, that firms in a sector with a long CTT tend to enjoy higher profitability and values than others. A long CTT of a sector presents a high entry barrier against any entrant because in such sectors, an existing stock of knowledge tends to be important for a longer period of time, making new innovation continuously rely on old knowledge owned by incumbents and protected by patent rights.

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进入壁垒与企业盈利能力的熊彼特方法：技术的周期时间

长期以来，进入壁垒一直被认为是企业盈利能力的主要决定因素。尽管竞争性较弱的市场结构通常被称为进入壁垒的指标，但过去的经验证据喜忧参半。此外，还考虑了技术因素，如研发强度。然而，没有进行令人满意的实证分析，主要是由于缺乏能够反映一个部门的技术环境的合适的代理变量。这项研究通过尝试一个新的代理变量——技术周期（CTT）来解决这个问题，并使用美国公司数据表明，CTT较长的行业中的公司往往比其他行业享有更高的盈利能力和价值。一个行业的长期CTT对任何进入者来说都是一个很高的进入壁垒，因为在这些行业中，现有的知识存量往往在更长的时间内很重要，这使得新的创新不断依赖于现有者拥有的并受专利权保护的旧知识。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Economics of Innovation and New Technology ECONOMICS-

CiteScore

7.20

自引率

3.00%

发文量

期刊介绍： Economics of Innovation and New Technology is devoted to the theoretical and empirical analysis of the determinants and effects of innovation, new technology and technological knowledge. The journal aims to provide a bridge between different strands of literature and different contributions of economic theory and empirical economics. This bridge is built in two ways. First, by encouraging empirical research (including case studies, econometric work and historical research), evaluating existing economic theory, and suggesting appropriate directions for future effort in theoretical work. Second, by exploring ways of applying and testing existing areas of theory to the economics of innovation and new technology, and ways of using theoretical insights to inform data collection and other empirical research. The journal welcomes contributions across a wide range of issues concerned with innovation, including: the generation of new technological knowledge, innovation in product markets, process innovation, patenting, adoption, diffusion, innovation and technology policy, international competitiveness, standardization and network externalities, innovation and growth, technology transfer, innovation and market structure, innovation and the environment, and across a broad range of economic activity not just in ‘high technology’ areas. The journal is open to a variety of methodological approaches ranging from case studies to econometric exercises with sound theoretical modelling, empirical evidence both longitudinal and cross-sectional about technologies, regions, firms, industries and countries.