How does strategic investment affect entry of new technologies and market structure? This article investigates the role of competition in firms' technology adoption decisions in the U.S. wireline broadband industry. I present a model of strategic entry deterrence and study how internet service...

High growth and progressive regions possess a culture that promotes innovation. Innovation depends on a region’s ability to use its own existing knowledge and knowledge generated elsewhere. This paper demonstrates the importance of the ability to absorb external knowledge in explaining...