Abstract

http://ssrn.com/abstract=2080595
 


 



Gains from Others’ Losses: Technology Trajectories and the Global Division of Firms


Chia-Hsuan Yang


Carnegie Mellon University - Department of Engineering and Public Policy

Rebecca Nugent


Carnegie Mellon University - Department of Statistics

Erica R.H. Fuchs


Carnegie Mellon University

July 14, 2014


Abstract:     
This paper offers new insights into the role of firms versus individuals in driving technology directions, and the extent to which human capital may be lost during industrial shifts. We explore in particular whether (1) due to different offshore production economics, firms who move manufacturing offshore slow U.S.-based R&D activities in an emerging technology and (2) the inventors originally within these offshoring firms, leave, and continue innovating in the emerging technology at different institutions. We focus on the 28 leading U.S. optoelectronic component manufactures for telecommunications and the inventors who patent at these firms. We triangulate hand-classified USPTO patents, SEC filings, inventor resumes, survey data, and select interviews of key inventors. We find that, in the case of U.S. optoelectronic component manufacturers for telecommunications, offshoring is associated with a decrease in innovation in the emerging technology, but an increase in all other types of patenting. While the majority of inventors depart to firms outside the industry and stop work in the emerging technology, an important minority of emerging technology inventors at the offshoring firms depart to a single onshore firm in the same industry (which gains from others’ losses and subsequently dominates this space). Our results suggest a strong role for firms and firm strategy in driving innovation directions, and the corresponding opportunities faced by individuals.

Number of Pages in PDF File: 42

Keywords: offshoring, manufacturing, innovation, location of knowledge

working papers series





Download This Paper

Date posted: June 10, 2012 ; Last revised: July 15, 2014

Suggested Citation

Yang, Chia-Hsuan and Nugent, Rebecca and Fuchs, Erica R.H., Gains from Others’ Losses: Technology Trajectories and the Global Division of Firms (July 14, 2014). Available at SSRN: http://ssrn.com/abstract=2080595 or http://dx.doi.org/10.2139/ssrn.2080595

Contact Information

Chia-Hsuan Yang (Contact Author)
Carnegie Mellon University - Department of Engineering and Public Policy ( email )
Baker Hall 129
5000 Forbes Ave,
Pittsburgh, PA 15213
United States
Rebecca Nugent
Carnegie Mellon University - Department of Statistics ( email )
Baker Hall
Pittsburgh, PA 15213
United States
Erica Renee Fuchs
Carnegie Mellon University ( email )
Pittsburgh, PA 15213-3890
United States
Feedback to SSRN


Paper statistics
Abstract Views: 920
Downloads: 119
Download Rank: 140,914
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.266 seconds