Network effects play a central role in many information goods industries including electronics and software. So far, however, their role in shaping biotechnology innovation has largely been overlooked. This paper presents data documenting the presence of strong network effects in stem cell...

Incumbent firms often acquire startups in pursuit of new technologies. While much attention is focused on startups producing radical innovations, in reality incumbent firms purchase technologies that range from the radical to the incremental. What explains this diversity? We build a model of R&D...

We propose a unifying framework for the role of visible product design as a driver of interfirm competition, covering aspects of both value creation and value capture. We introduce the concept of “relative” product differentiation and theorize how design choices, by affecting consumer...

The Internet of Things (IoT) relies heavily on wireless communication technologies, which are covered by thousands of standard-essential patents (SEPs). Numerous applications of IoT technologies are being developed, frequently coming from entrepreneurial firms. The high degree of fragmentation...

Network externalities spur the growth of networks and the adoption of network goods in two ways. First, they make it more attractive to join a network the larger its installed base. Second, they create incentives for network members to actively recruit new members. Despite indications that the...

We investigate the role of patents and alliances as venture capital selection criteria in the screening of business proposals. Our analyses address two research gaps. First, we provide evidence on the importance of patents and alliances in raising venture capital, two resources that have...

The link between firms engaging in open source software (OSS) development and the OSS community is established by individual developers. This linkage might entail a principal-agent issue due to the developer's double allegiance to firm and OSS community, and expose the firm to the risk of losing...

We introduce a novel categorization of technology-focused acquisitions based on how a target's technology relates to an acquirer's existing products. Specifically, we distinguish between acquisitions aimed at improving product performance and those that shall add new functionality to the...