This paper studies the effects of vertical integration on innovation in the chipset and smartphone industries. I formulate and estimate a dynamic structural model of a dominant upstream chipset maker and downstream smartphone handset makers. The two sides make dynamic investment decisions and...

The architecture of a firm’s network of transactions in its surrounding business ecosystem may affect its innovation performance. Here we proximate a business ecosystem as a transaction network among firms. Specifically, we analyze how the innovation performances of the firms are associated...

Many high technology goods are based on standards that require several essential patents owned by different IP holders. This gives rise to a complements and a double mark-up problem. We compare the welfare effects of two different business strategies dealing with these problems. Vertical...