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 database of 1818 products marketed between 1990 and 1999 by 265 firms active in three markets of the Local Area Network (LAN) industry we first construct a measure of technological leadership and then relate this measure 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 find that leaders in one market can also systematically innovate in a related and adjacent market.