This paper analyzes the impact of network externalities on R&D competition between an incumbent and a potential entrant …. The analysis shows that the incumbent always invests more than the entrant in the development of higher quality network … the presence of network externalities. By choosing compatible network goods, firms do not necessarily reduce the R …

This paper studies the incentives to undertake uncertain R&D initiatives in a dynamic duopoly network industry. It is … 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 …

firms, network entrepreneurs, and local financiers on the market prices of loans. I show that such relations improve the … match of capital to ideas in the network even though the overall distribution of capital to ideas remains unchanged. This … particular, I show that there are market incentives for established firms to decrease the information gap between network …