《《Innovation and firm-level persistent profitability-a Schumpeterian framework》.pdfVIP

MANAGERIAL AND DECISION ECONOMICS Manage. Decis. Econ. 22: 239–250 (2001) DOI: 10.1002/mde.1018 Innovation and Firm-Level Persistent Profitability: A Schumpeterian Framework Peter W. Roberts* Columbia Business School, Columbia Uniersity, New York, NY, USA Studies of firm-level profit dynamics tend to attribute the variance in profit persistence to variability in the extent to which imitative pressures are resisted. This monopoly-based explanation of persistent profitability implicitly assumes a one-to-one correspondence be- tween firm-level and product-level profit dynamics. Following Schumpeter, this paper begins to develop a framework for firm-level profit persistence that embraces product innovation, competitor imitation, and, more importantly, the prospect that several product innovations may be embodied within a single firm. Such an approach opens the door for an innovation- based explanation of profit persistence to accompany the monopoly-based arguments that are typically offered. Copyright © 2001 John Wiley Sons, Ltd. [D]o companies live eternally and do they pay normally high and low profits towards more nor- diidends foreer? Certainly there are such, but mal levels (Mueller, 1977, 1986). That is, it is not broadly only two groups of them. First, there are overly problematic that some firms earn relatively branches of in