How does competition in the development of artificial intelligence affect a firm's technology search strategy? Evidence from the US pharmaceutical industry

During technological shifts in which new technology threatens to substitute for existing technology, how do firms search for such new technology? Although several studies have demonstrated the benefits of collaboration among firms in the development of new technologies, research in this stream has largely overlooked the potential roles of competition. Our empirical analysis of U.S. pharmaceutical firms' adoption of artificial intelligence in 2000-2019 shows that early and late entrants learn from each other. Specifically, late entrants learn basic technology from early entrants, and early entrants learn applied technology from late entrants.