This paper analyzes the impact of network externalities on R&D competition between an incumbent and a potential entrant … the presence of network externalities. By choosing compatible network goods, firms do not necessarily reduce the R …

shown that network externalities positively affect the incentives to invest in R&D. In the model, competition resembles a …. Moreover, network externalities have an important impact in the dynamic evolution of the industry. Although in the long-run a …-and-neck technological configurations. This short-run competition is fiercer and longer, the higher the level of network externalities …