Keystone Players and Complementors: An Innovation Perspective

Frédéric Marty and Thierry Warin

CIRANO Working Papers from CIRANO

Abstract: In this article, we investigate the role of keystone players and consider their impact in terms of innovation rate in an industry. To do so, we build a theoretical framework that considers the innovation rate in the context of an industry with one keystone player and then with multiple keystone players. The results are threefold. First, the presence of a keystone player is incredibly important for innovation on a market. Second, however, our results also show that a biased market power in favor of the keystone player may hinder innovation in this industry, although the negative impact on the industry’s innovation rate may not be seen at first. Finally, we demonstrate that an industry obtains a higher innovation rate with multiple keystone players. This framework could inform decisions for the antitrust enforcers.

Keywords: Innovation; Coopetition; Technological Dependence; Dominant Position; Keystone Players; Platform (search for similar items in EconPapers)
JEL-codes: L12 L22 L41 L86 (search for similar items in EconPapers)
Date: 2020-11-26
New Economics Papers: this item is included in nep-com and nep-hme
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Keystone Players and Complementors: An Innovation Perspective (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2020s-61

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