Innovation, appropriation and entrepreneurial strategy
Innovation, appropriation and entrepreneurial strategy
We analyse the strategy of an entrepreneur seeking to earn a return on a new discovery when faced by an incumbent firm and pool of potential entrants. The entrepreneur may choose to purchase the incumbent without revealing the discovery, enter the market as a competitor, or approach the incumbent with a view to some form of cooperation. Among our findings is that it is the magnitude of the discovery and its susceptibility to appropriation, rather than entry costs, that are the main determinants of whether entry will occur. Also, whilst major discoveries will always be implemented, others might be withheld.
entrepreneur, property rights, appropriability, oligopoly
University of Southampton
Stewart, Geoff
a94573f3-bb92-416f-ba18-3c6272224d18
1 February 2004
Stewart, Geoff
a94573f3-bb92-416f-ba18-3c6272224d18
Stewart, Geoff
(2004)
Innovation, appropriation and entrepreneurial strategy
(Discussion Papers in Economics and Econometrics, 403)
Southampton, UK.
University of Southampton
23pp.
Record type:
Monograph
(Discussion Paper)
Abstract
We analyse the strategy of an entrepreneur seeking to earn a return on a new discovery when faced by an incumbent firm and pool of potential entrants. The entrepreneur may choose to purchase the incumbent without revealing the discovery, enter the market as a competitor, or approach the incumbent with a view to some form of cooperation. Among our findings is that it is the magnitude of the discovery and its susceptibility to appropriation, rather than entry costs, that are the main determinants of whether entry will occur. Also, whilst major discoveries will always be implemented, others might be withheld.
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Published date: 1 February 2004
Keywords:
entrepreneur, property rights, appropriability, oligopoly
Identifiers
Local EPrints ID: 33787
URI: http://eprints.soton.ac.uk/id/eprint/33787
ISSN: 0966-4246
PURE UUID: 0dc1c9b1-185c-4505-8c82-159ef017bebf
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Date deposited: 15 May 2006
Last modified: 15 Mar 2024 07:45
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Author:
Geoff Stewart
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