An often contentious issue is how spillovers affect foreign versus domestic industry leadership in a developing economy, for instance, whether policies favour domestic firms. To address such issues it is important to understand the baseline effect of spillovers on industry leadership, which I...

The question of whether firms may successfully adapt top a change in technology has led to divergent perspectives. I consider this issue in the context of a model of firms in an industry facing a shift from a legacy to a new technology. I allow for firm heterogeneity through entry and gradual...

An important question in strategy is how firms adapt to a fundamental change in industry conditions. However, there is wide divergence in the extent to which firms are considered to be forward-looking in setting strategy in such a context. I focus on the effect of differences in two aspects of...

An important question in strategy is how firms adapt to a fundamental change in industry conditions. However, there is wide divergence in the extent to which firms are considered to be forward-looking in setting strategy in such a context. I focus on the effect of differences in two aspects of...

During the long-run evolution of an industry there are often periods with substantial changes to entry and exit rates. Several factors lead to these turbulent firm dynamics. for instance technological development, that affect the resources available to firms. I develop a model in which firms...

A better set of financial institutions enables firm access to external finance with less consequent distortion of firm policies, such as investment, entry and exit policies. At the limit, there is no distortion. In contrast, there are many different ways that a poor set of financial institutions...

I develop a model for how heterogeneous firms within an industry respond to a financial shock that temporarily raises the cost of external finance, relative to internally generated funds. The model incorporates three elements that lead to substantial variation across firms in policy response to...