Old Technological Capability and New Technology Adoption: Firm’s Technology Portfolio Management during Technological Transitions

Wenyue Zhuang, National University of Singapore
Kwanghui Lim, Melbourne Business School
Poh-kam Wong, National University of Singapore

Abstract

Research qns: What’s the effect of a firm’s prior competence in old technology on its innovation capability in new technology? Under what conditions would such effects be enhanced or reduced? Preview of results: We find that competence in old technology has a negative effect on patenting in new technological fields. Interdependence between old and new fields offsets this result, but not interdependence between complementary and new technology.