Economics, Econometrics and Finance
4 years ago

Firms' product choices driven by input similarities, boosting innovation and productivity.

2 views
LSE Research Online Documents on Economics
Swimming upstream: input-output linkages and thedirection of product adoption
Johannes Boehm, Swati Dhingra, John Morrow

Paper Summary

Multiproduct firms choose to expand into products that share similar input-output connections. A firm's capabilities across products predict which products they adopt. Input linkages, rather than product market complementarities, are crucial for firms' product capabilities.

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