Survival and the introduction of new technology: A patent analysis in the integrated circuit industry

Utilizing a database containing all US patents issued to integrated circuit (IC) manufacturers from 1975 to 1994 we analyze a firm's decision to pursue a technology across varying levels of technological turbulence. We examine the effects of the value of a firm's technological advancement, the newness of its technology, and industry turbulence on the probability of failure. We find during periods of low technological turbulence, firms utilizing new technologies to create significant technological advances, face a higher probability of failure. During periods of high technological turbulence, firms using older technology to develop significant technological advancements face lower probabilities of failure.