Entrepreneurial Innovations in Network Industries
Pehr-Johan Norbäck (),
Lars Persson and
No 08-02, Working Papers from NET Institute
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 (search for similar items in EconPapers)
JEL-codes: D40 L10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-cse, nep-ent, nep-ino, nep-mic, nep-net, nep-soc and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Acquisitions, Entry and Innovation in Oligopolistic Network Industries (2016)
Journal Article: Acquisitions, entry, and innovation in oligopolistic network industries (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:net:wpaper:0802
Access Statistics for this paper
More papers in Working Papers from NET Institute
Bibliographic data for series maintained by Nicholas Economides ().