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on Technology and Industrial Dynamics |
| By: | Pehr-Johan Norbäck (Research Institute of Industrial Economics (IFN)); Lars Persson (Research Institute of Industrial Economics (IFN)); Joacim Tåg (Research Institute of Industrial Economics (IFN)) |
| Abstract: | In this paper, we study entrepreneurial innovations in an industry characterized by network effects. We show that the presence of network externalities tends to make the entrepreneur prefer sale to entry. Moreover, we also show that the incentive to innovate for entry decreases when network effects become stronger, whereas there is an increase in the incentive for innovation for sale. Moreover, we show that increasing the degree of industry-wide standardization furthers the goal of increasing entry by entrepreneurs. However, this may come at the cost of reducing the research intensity by reducing the bidding competition among incumbents over the innovations of entrepreneurs. |
| Keywords: | Entrepreneurship, Entry, Compatibility, Innovation, Network Effects, Standardization. |
| JEL: | D40 L10 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:0802&r=tid |
| By: | Gustavsson Tingvall, Patrik (China Economic Research Center (CERC)); Karpaty, Patrik (Department of Economics) |
| Abstract: | The central prediction of the Aghion et al. (2005) model is an inverted U-shaped relation between innovation and competition. The model is built on the assumption of a product market and has not yet been empirically tested on service-sector firms. Using detailed firm-level data, we find the inverse U-shaped relation to hold for both small and large service-sector firms. However, non-exporting service firms deviate from the overall pattern. A more detailed breakdown of innovation expenditures shows that the inverse U-shaped pattern holds for both intramural R&D and training, but not for extramural R&D. Finally, as competition increases, small firms tend to seek more strategic alliances with competitors while large firms tend to decrease their collaboration with competitors. To some extent, the behavior of large firms can be due to their greater capacity to handle innovation projects internally and as competition increases, so does the payoff of an edge to competitors. |
| Keywords: | R&D; innovation; competition; service sector |
| JEL: | D40 L10 L60 O30 |
| Date: | 2008–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:hastef:0702&r=tid |
| By: | Alexander Peine |
| Abstract: | This paper reviews three strands of the innovation literature that have presented innovation as a distributed process that combines knowledge of users, designers and manufacturers: user innovations, Science and Technology Studies (STS), and the study of consumption. These literatures have explored different aspects of the micro-processes through which use and design are locally aligned. This paper pulls together insights from these literatures, and identifies an important gap: the connections between the local alignment of use and design and the macro dynamics of industrial and technological change. The paper then calls for an analysis of the social processes that link the dynamics of the use environment, where forms and meanings of use are actively created, with the technical knowledge bases of industries. It concludes with a number of propositions towards an integrated framework of use, consumption and industrial dynamics. |
| Keywords: | use knowledge |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:uis:wpaper:0818&r=tid |