Download This PaperSpillovers Across Product Categories in the Medical Device Industry
49 Pages Posted: 7 Nov 2018 Last revised: 6 Aug 2020
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Spillovers Across Product Categories in the Medical Device Industry
Firm Scope and Spillovers from New Product Innovation: Evidence from Medical Devices
Date Written: May 5, 2020
Abstract
We use detailed panel data at the buyer level to understand the size and nature of spillovers across product categories in medical devices. Difference-in-differences regressions identify spillovers in usage (accounting for 21 percent of market share) across categories that share physical features. All categories exhibit spillovers in contracting (accounting for 7 to 18 percent of the probability of contracting). These buyer-level spillovers represent up to half of all potential demand spillovers and one-third of the overall correlation in shares across categories, suggesting meaningful implications for firm strategy and antitrust policy for firms selling in multiple product categories.
Keywords: Innovation, Economies of Scope, Spillovers
Suggested Citation: Suggested Citation
University of California, Berkeley - Haas School of Business ( email )
545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States
Mara Lederman
University of Toronto - Rotman School of Management ( email )
105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada