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  • P-ISSN 2586-2995
  • E-ISSN 2586-4130
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KDI Journal of Economic Policy. Vol. 46, No. 4, November 2024, pp. 73-92

https://doi.org/10.23895/kdijep.2024.46.4.73

× KDI Open Access is a program of fully open access journals to facilitate the widest possible dissemination of high-quality research. All research articles published in KDI JEP are immediately, permanently and freely available online for everyone to read, download and share in terms of the Creative Commons Attribution 4.0 International License.

Product Pioneers and Followers’ Choices on New vs Existing Plant to Product New Products: Evidence from Korean Manufacturing and Implications on Learning Spillovers†

Chin Hee Hahn

Author & Article History

Manuscript received 22 July 2024; revision received 24 July 2024; accepted 05 September 2024.

Abstract

This paper examines whether product pioneers differ from product followers in their decision to establish a new plant to product a new product, utilizing a firm-plant-product dataset for Korean manufacturing from 1990 to 1996. We find that followers are more likely to establish a new plant rather than utilize existing plants to product a product which is new to the plant. We also find that establishing a new plant is accompanied by a larger investment than utilizing existing plants. These results seem consistent with the existence of pioneer-to-follower learning spillovers, possibly in the sense that followers face less uncertainty about the future profitability of the new product.

Keywords

개척자, 추종자, 학습파급효과, 불확실성, 투자, Pioneer, Follower, Learning Spillovers, Uncertainty, Investment

JEL Code

O11, O14, O31, O47

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