Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/119852
Authors: 
Dosi, Giovanni
Grazzi, Marco
Moschella, Daniele
Year of Publication: 
2015
Series/Report no.: 
LEM Working Paper Series 2015/05
Abstract: 
In this work we analyze the relationship between the patterns of firm diversification, if any, across product lines and across bodies of innovative knowledge, proxied by the patent classes where the firm is present. Putting it more emphatically we investigate the relationship between "what a firm does" and "what a firm knows". Using a newly developed dataset matching information on patents and products at the firm level, we provide evidence concerning firms' technological and product scope, their relationships, the size-scaling and coherence properties of diversification itself. Our analysis shows that typically firms are much more diversified in terms of products than in terms of technologies, with their main products more related to the exploitation of their innovative knowledge. The scaling properties show that the number of products and technologies increase log-linearly with firm size. And the directions of diversification themselves display coherence between neighboring activities also at relatively high degrees of diversification. These findings are well in tune with a capability-based theory of the firm.
Subjects: 
Diversification
Coherence
Patents
Products
Capabilities
Firm behaviour
JEL: 
C81
D22
L20
L25
O31
Document Type: 
Working Paper

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