Imitation vs . Innovation , Technological Environments , and Technological Leadership Change by the Latecomer

We build a simulation model to examine the role in catch-up of latecomers’ resource allocation between innovation and imitation under different technological environments. First, the results from the model highlight the importance of transitioning from imitation to innovation as the technological gap between latecomers and incumbents narrows. Second, we investigate the impact of technological opportunity and appropriability which affect the effectiveness of innovation and imitation R&D. Findings regarding technological opportunity are counter-intuitive. Although technological opportunity is considered a window of opportunity for technological leadership change by latecomers, abundant technological opportunities may deter technological leadership change because incumbents also advance with considerable speed by developing new untapped technologies. Finally, under abundant technological opportunities, latecomers should invest considerable R&D resource in imitating incumbents because incumbents also move forward fast. Imitation vs. Innovation, Technological Environments, and Technological Leadership Change by the Latecomer Abstract We build a simulation model to examine the role in catch-up of latecomers’ resource allocation between innovation and imitation under different technological environments. First, the results from the model highlight the importance of transitioning from imitation to innovation as the technological gap between latecomers and incumbents narrows. Second, we investigate the impact of technological opportunity and appropriability which affect the effectiveness of innovation and imitation R&D. Findings regarding technological opportunity are counter-intuitive. Although technological opportunity is considered a window of opportunity for technological leadership change by latecomers, abundant technological opportunities may deter technological leadership change because incumbents also advance with considerable speed by developing new untapped technologies. Finally, under abundant technological opportunities, latecomers should invest considerable R&D resource in imitating incumbents because incumbents also move forward fast.We build a simulation model to examine the role in catch-up of latecomers’ resource allocation between innovation and imitation under different technological environments. First, the results from the model highlight the importance of transitioning from imitation to innovation as the technological gap between latecomers and incumbents narrows. Second, we investigate the impact of technological opportunity and appropriability which affect the effectiveness of innovation and imitation R&D. Findings regarding technological opportunity are counter-intuitive. Although technological opportunity is considered a window of opportunity for technological leadership change by latecomers, abundant technological opportunities may deter technological leadership change because incumbents also advance with considerable speed by developing new untapped technologies. Finally, under abundant technological opportunities, latecomers should invest considerable R&D resource in imitating incumbents because incumbents also move forward fast.