We build and empirically test a model that predicts the display of innovative behavior as a function of environmental change, with recent experience and economic status acting as moderators. We start with the model developed by Slevin (1971), which evolved from the so-called innovation boundary....

Technological diversity is important to achieve long-term technological progress as diversity fosters recombinant innovation and renders undesirable lock-ins less likely. Many government policies influence the diversity of a technology, in particular by subsidizing collaborative innovation...