Technological Leadership (De)Concentration: Causes in Icte

41 Pages Posted: 12 Sep 2016 Last revised: 14 Oct 2016

See all articles by Yasin Ozcan

Yasin Ozcan

National Bureau of Economic Research (NBER)

Shane M. Greenstein

Harvard University - Technology & Operations Management Unit; National Bureau of Economic Research (NBER)

Date Written: September 2016

Abstract

Using patents as indicators of inventive activity, this article characterizes the concentration of origins of invention from 1976 to 2010, and how these changed over time. The analysis finds pervasive deconcentration in virtually every area related to ICT, but it can explain only a small part of this trend. Deconcentration happens despite the role of lateral entry by existing firms. New firm entry drives part of the deconcentration, but this alone cannot explain the change. A single supply factor in the market for ideas, such as the breakup of AT&T, also cannot explain the trend. Finally, eleven percent of patents change hands through mergers and acquisitions activity, but this does not make up for the declines in concentration in the origins of invention.

Suggested Citation

Ozcan, Yasin and Greenstein, Shane M., Technological Leadership (De)Concentration: Causes in Icte (September 2016). NBER Working Paper No. w22631. Available at SSRN: https://ssrn.com/abstract=2837643

Yasin Ozcan (Contact Author)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Shane M. Greenstein

Harvard University - Technology & Operations Management Unit ( email )

Boston, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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