Introduction

László Szerb, Eva Somogyine Komlosi, Zoltan Acs, Esteban Lafuente and Abraham K. Song
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Eva Somogyine Komlosi: University of Pecs
Abraham K. Song: Pepperdine University, Graduate School of Education and Psychology

Chapter Chapter 1 in The Digital Platform Economy Index 2020, 2022, pp 1-2 from Springer

Abstract: Abstract In one of the most interesting articles on the Information-Technology Revolution (ITR), Hobijn and Jovanovic (2001) argued that the arrival of the ITR in the 1970s created a need for new firms (Greenwood & Jovanovic, 1999). Technology breakthroughs favor the formation of new firms for three reasons: They provide awareness and skills, vintage capital, and vested interests. The stock market incumbents of the day were not ready to implement new digital technologies, thus it took new firms to bring the technology to market after the mid-1980s.The stock prices of incumbents fell immediately. New venture capital flowed to startups that built the new industries in the USA, but this did not occur in Europe (Gompers & Lerner, 2001). Between 1980 and 2020, the U.S. stock market increased 30-fold. The five most valuable public companies in the USA in 2020—Apple, Amazon, Microsoft, Facebook, and Google—are valued at or near $1 trillion each. Many of them are “matchmaker” businesses whose core competency is the ability to match one group of users with another by reducing transaction costs.

Date: 2022
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DOI: 10.1007/978-3-030-89651-5_1

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