Assembling the elephant: A review of empirical studies on the impact of technical change upon incumbent firms

This paper reviews 16 empirical studies of the impact of technological change upon incumbent firms. While all 16 studies have strong internal validity, their external validity is unclear. These studies employ different definitions, use different taxonomies, and rely on differing causal mechanisms. Their evidence, though extensive, draws largely upon U.S. contexts. This complicates an assessment of their cumulative external validity. An overall analysis concludes that there is a need to expand our research to other countries, because the impact of technical change may differ across countries. The paper integrates these phenomena into a new paradigm with three dimensions that condition the impact of technical change: the management of complexity, the external linkages of innovating firms, and the institutional environment.