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reducing bidding competition, thereby also reducing acquisition prices and innovation incentives. … of commercialization (entry or sale) in network industries showing that high equilibrium acquisition prices are driven by … more important when there is an increase in network effects. A consequence is higher innovation incentives under an …
Persistent link: https://www.econbiz.de/10008919575
sales price of a developed innovation. This will trigger preemptive acquisitions by incumbents, thus increasing the reward …
Persistent link: https://www.econbiz.de/10005025461
No abstract.
Persistent link: https://www.econbiz.de/10010611605
We develop a theory of commercialization mode (entry or sale) of entrepreneurial inventions into oligopoly, and show that an invention of higher quality is more likely to be sold (or licensed) to an incumbent due to strategic product market effects on the sales price. Moreover, preemptive...
Persistent link: https://www.econbiz.de/10004964394
The starting point of this paper is that the exit of venture-backed firms often takes place through sales to large incumbent firms. We show that in such an environment, venture-backed firms have a stronger incentive to develop basic innovations into commercialized innovations than incumbent...
Persistent link: https://www.econbiz.de/10005645429
No abstract.
Persistent link: https://www.econbiz.de/10010684481
No abstract.
Persistent link: https://www.econbiz.de/10010818375
No abstract.
Persistent link: https://www.econbiz.de/10010818379
Entrepreneurs face higher commercialization costs than incumbents. We show that this implies that entrepreneurs will choose more risky projects than incumbents, aiming to reduce their high expected marginal commercialization cost. However, entrepreneurs may select too safe projects from a social...
Persistent link: https://www.econbiz.de/10010818447
Market competition is central to innovative activity, the diffusion process and macro-economic productivity growth. Productivity growth at all levels comes about through institutional reconfiguration in response to the ongoing market process. Stable and sustained long-term growth in output...
Persistent link: https://www.econbiz.de/10010818448