Technological leadership and persistence in product innovation in the Local Area Network industry 1990–1999

We study how technological leadership affects persistence in product innovation. Relying upon a databaseof 1818 products marketed between 1990 and 1999 by 265 firms active in three markets of the LocalArea Network (LAN) industry we first construct a measure of technological leadership and then relate thismeasure to persistence in innovation. We find that controlling for size, R&D intensity, intangible assets,and market structure, technological leaders are more persistent innovators than laggards. We also findthat leaders in one market can also systematically innovate in a related and adjacent market.