The Underemphasized Role of Established Firms as the Sources of Major Innovations

We argue that established firms, including industry incumbents and diversifying entrants, play vital all underemphasized roles as the sources of major innovations in many industries The study presents empirical evidence showing that established firms are often sources of major innovations in the telecommunications and medical sectors. We conduct an exploratory investigation of how variation in the types of technical and market change influence whether industry incumbents, diversifying entrants or nets companies are the sources of major innovations Copyright 1996 by Oxford University Press.

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