Knowledge diffusion in nascent industries: Asymmetries between startups and established firms in spurring inventions by other firms

Abstract

Research on industry evolution highlights the role of knowledge-building activities of startups and established firms in shaping knowledge evolution in a nascent industry. Yet, research thus far has overlooked the possibility that differences between startups and established firms might also shape the diffusion of the knowledge that they build. This study abductively explores this conjecture in the context of solar energy by examining the extent to which the photovoltaic cell inventions that firms create spur subsequent inventions by other firms. In contrast with existing literature highlighting differences across firms in the types of inventions they create, this study reveals asymmetries between startups and established firms in the diffusion of the knowledge underlying their inventions, even when they create inventions with similar attributes.