Little attention has been devoted to the question of how late movers overcome first-mover advantage and catch up with incumbents. We examine the role in catch-up of late movers' optimal resource allocation between innovation and imitation. Building on Nelson and Winter's (1982) technology...

The emergence of a giant cluster, in which bits and pieces of otherwise unconnected parts of a system come together, has been extensively studied in nonsocial contexts. This phenomenon has attracted substantial attention because it allows researchers to understand and predict the collective...