2006–2010

The Organization of the Innovation Industry: Entrepreneurs, Venture Capitalists, and Oligopolists

Särtryck nr 2009:38

Författare: Pehr-Johan Norbäck och Lars PerssonÅr: 2009 Publikation: Journal of the European Economic Association Årgång (nr): 7 (6) Sidor: 1261–1290
Artikeln online (behörighet kan krävas)


We construct a model where incumbents can either acquire basic innovations from entrepreneurs, or wait and acquire developed innovations from entrepreneurial firms supported by venture capitalists. We show that venture-backed entrepreneurial firms have an incentive to overinvest in development vis à vis incumbents due to strategic product market effects on the sales price of a developed innovation. This will trigger preemptive acquisitions by incumbents, thus increasing the reward for entrepreneurial innovations. We also show that venture capital can emerge in equilibrium if venture capitalists have cost advantages, or if development is associated with double moral hazard problems.


Referens:
Norbäck, Pehr-Johan och Lars Persson (2009), "The Organization of the Innovation Industry: Entrepreneurs, Venture Capitalists, and Oligopolists". Journal of the European Economic Association 7(6), 1261–1290.

Pehr-Johan Norbäck

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Lars Persson

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Tel: 08 665 4504
lars.persson@ifn.se

Aktuell forskare

Lars Calmfors

Forskningsområden: Arbetsmarknads- och makroekonomi.

Några av de frågor Lars Calmfors försöker besvara i sin forskning:

  • Orsaker till arbetslöshet?
  • Hur fungerar EMU?
  • Hur kan olika institutionella arrangemang bidra till en lämplig finanspolitik? 

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