Articles - Bresch et al (2000)

9 important questions on Articles - Bresch et al (2000)

This paper proposes that the specific pattern of innovative activities in an industry can be explained as the outcome of different technological (learning) regimes. Building on the Schumpeterian tradition, this paper starts from the recognition that there are two main patterns of innovation in industries.

The first one is a creative destruction pattern where innovations are introduced by ®rms that did not innovate before: it is called `widening'. The second one is a creative accumulation pattern where innovations are introduced by firms that innovated before: it is called `deepening'

A Schumpeter Mark II pattern (deepening) is associated

positively to the concentration ratio of the top four patenting firms and to the stability of the hierarchy of innovators, and negatively to the share of patent applications by firms applying for the first time in a certain period

A Schumpeter Mark I pattern (widening) is the opposite. Then the specific pattern of innovation is explained by

  technological opportunities, appropriability conditions, cumulativeness of knowledge and the relevant knowledge base in an industry.
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

Schumpeter Mark I is characterised by `creative destruction' with

technological ease of entry and a fundamental role played by entrepreneurs and new firms in innovative activities.

Schumpeter Mark II is instead characterised by `creative accumulation' with

the prevalence of large established firms and the presence of relevant barriers to entry to new innovators.

A technological regime is defined by

by the specific combination of technological opportunities, appropriability of innovations, cumulativeness of technical advances and the properties of the knowledge base underpinning firms' innovative activities

Schumpeter Mark I ± Widening (Large and highly turbulent population of innovators):

(i)Schumpeter Mark I ± Widening (Large and highly turbulent population of innovators): High technological opportunities, low appropriability and low cumulativeness (at the ®rm level) conditions and a limited role of generic knowledge lead to low degrees of concentration of innovative activities with a relatively large number of innovators, high rates of entry and high instability in the hierarchy of innovators.

(ii) Schumpeter Mark II ± Deepening (Concentrated and rather stable population of innovators):

Low opportunity conditions, high appropriability and high cumulativeness (at the ®rm level) conditions and a generic knowledge base lead to high degrees of concentration of innovative activities, low rates of entry and a remarkable stability in the hierarchy of innovators. However, also high opportunity conditions in conjunction with high appropriability conditions may be associated to a Schumpeter Mark II pattern.

The limitations of patent data are well known.

. Not all innovations are patented by firms.

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo