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Negotiating For The Market, Joshua S. Gans
Negotiating For The Market, Joshua S. Gans
Joshua S Gans
In a dynamic environment where underlying competition is ‘for the market,’ this paper examines what happens when entrants and incumbents can negotiate for the market. For instance, this might arise when an entrant innovator can choose to license to or be acquired by an incumbent firm; i.e., engage in cooperative commercialization. It is demonstrated that, depending upon firms’ dynamic capabilities, there may or may not be gains to trade between incumbents and entrants in a cumulative innovation environment; that is, entrants may not be adequately compensated for losses in future innovative potential. This stands in contrast to static analyses that …
Innovation And Climate Change Policy, Joshua S. Gans
Innovation And Climate Change Policy, Joshua S. Gans
Joshua S Gans
This paper examines then notion that more stringent climate change policy will induce innovation in environmentally friendly technologies. While past work has been concerned that such policies may stimulate such innovation at the expense of innovation elsewhere in the economy, the model presented here challenges the presumption that environmentally friendly innovation will be increased. It is demonstrated that a tighter emissions cap will reduce the scale of fossil fuel usage and that this effect will diminish incentives to improve fossil fuel efficiencies. At the same time, such policies may stimulate innovation that improves the efficiency of alternative energy but that …
Start-Up Commercialisation Strategy And Innovative Dynamics, Joshua S. Gans
Start-Up Commercialisation Strategy And Innovative Dynamics, Joshua S. Gans
Joshua S Gans
This paper endogenises a start-up’s choice between competitive and cooperative commercialisation in a dynamic environment. It is demonstrated that, depending upon firms’ dynamic capabilities, there may or may not be gains to trade between incumbents and start-ups in a cumulative innovation environment; that is, start-ups may not be adequately compensated for losses in future innovative potential. Because of this, there is no clear relationship between observed inter-industry innovation and commercialisation choice unless dynamic capabilities of firms are taken into account. In addition, the analysis demonstrates subtle and novel insights into the relationship between dynamic capabilities and rates of innovation.