Consumer and Firm Behavior in Two Technological Industries
Abstract
This dissertation consists of two independent chapters. Each is an empirical study of a technological industry. The first focuses on the earliest years of the semiconductor industry and the second addresses the recent developments in the video game industry. Chapter one examines the role of inventor mobility to drive innovation spillovers in the early semiconductor industry. I employ newly collected patent data from the under-studied period of 1946–1959 to track inventor movement across firms and regions. I exploit patent assignments to identify inventor moves and test for increased patenting activity for firms on both sides of a move. The data shows increases to patenting after a move on both sides which tapers off over a period of several months. Using the main patent data and a supplementary detailed inventor dataset, I further examine the possible spillover role played by universities. I also use both datasets to discuss the broader patterns in the industry during this period, including overall geographic and hiring trends. Chapter two explores the connection between sales of video game hardware (consoles) and the quality of associated software libraries. I first discuss the industry's unique features and place among durable goods and platform markets, then turn to data. I also measure the quality of backward compatibility with software designed for previous console generations and its effect on current generation sales. I investigate these links using data on the recently concluded seventh generation of video game consoles (2005-2014). Software quality is measured using aggregated review scores from Metacritic. I find that overall software quality has a significant positive impact on hardware sales, but backward compatibility's effect is negligible. Consumers are found to be forward-looking, with evidence for both substitution across platforms and across purchase timing.
Degree
Ph.D.
Advisors
Martin, Purdue University.
Subject Area
Economics
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