sufficiently better at judging an idea's value and if it is sufficiently more costly to patent low than high value ideas, VCs …-run performance, but also infl ates their acquisition prices, and lowers their acquirers' overall profits. Patent law usefulness …

option of selling to an incumbent increases innovation incentives for entrepreneurs when network effects are strong and … necessarily restrict innovation incentives. We also show that network effects promote acquisitions over entry and that the … entrepreneur has strong incentives to invest in the initial user base of the innovation. …

entrepreneurs’ choice of riskiness (quality) of an innovation project, and on their mode of commercializing the innovation (market …

We develop a theory of innovation for entry and sale into oligopoly, and show that an invention of higher quality is …

product competition tends to increase the relative profitability of innovation for sale relative to entry. Increased …, implies that the incentive for innovation for sale can increase with increased competition. Finally, we show that a stricter … competition for the innovation, without reducing the total rents for innovations too much. …