Anita M. McGahan and Brian S. Silverman

How does innovative activity change as industries mature?
Keywords: Innovation; Industry evolution; Patents
JEL classification:

Abstract: In this paper we use evidence on the activity of U.S. publicity traded firms from the early 1980s to the mid-1990s to investigate whether innovation - measured by patenting activity - declines during the mature phase of industry life cycle. Overall, the analyses reveals that the general level of patenting activity is not lower in mature industries than in emerging industries. We also find no evidence of a shift from product to process innovation with industry maturity, and no evidence that leaders innovate less in mature industries than in non-mature industries.