We examine the impact of product portfolio strategy on the likelihood of firm survival within the nascent unmanned aerial vehicles (UAV) or the drone industry. Using novel and representative global data on firms that operate within the domain of air platforms in the drone industry, our study captures a period of ferment in the industry as it went through significant change and began to acquire some level of stability. The results show that both portfolio specialty and activeness have a positive impact on firm survival. Specialist firms with narrow product usage or higher portfolio specialty are in an advantageous position compared to generalists with wide product usage or low portfolio specialty. They also have a higher likelihood of survival, overall. Similarly, a firm with a more active set of drones within its product portfolio also survives better. The results are consistent even after accounting for firm‐level controls and are robust to other model specifications. Our findings have important implications for firm strategy, positioning, and interaction with technology in nascent industries, especially relating to the development and deployment of new technologies and products.
