Working Paper No. 799

Creative Destruction and Productive Preemption

Published: June 10, 2009, revised September 2014Pages: 33Keywords: Acquisitions; Entrepreneurship; Innovation; Start-ups; Patent; Ownership; QualityJEL-codes: G24; L10; L20; M13; O30
Published version

Creative Destruction and Productive Preemption Pehr-Johan Norbäck, Lars Persson and Roger Svensson


We develop a theory of commercialization mode (entry or sale) of entrepreneurial inventions into oligopoly, and show that an invention of higher quality is more likely to be sold (or licensed) to an incumbent due to strategic product market effects on the sales price. Moreover, preemptive acquisitions by incumbents are shown to stimulate the process of creative destruction by increasing the entrepreneurial effort allocated to high-quality invention projects. Using detailed data on patents granted to small firms and individuals, we find evidence that high-quality inventions are often sold, and that they are sold under bidding competition.

Pehr-Johan Norbäck

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Ph: +46 8 665 4522
Mob: +46 73 574 3379
pehr-johan.norback@if...

Lars Persson

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Ph: +46 8 665 4504
lars.persson@ifn.se

Roger Svensson

Contact

Ph: +46 8 665 4549
Mob: +46 70 491 0166
roger.svensson@ifn.se

Global index of the sharing economy

Timbro SEI

2018 Bergh Funcke Wernberg - Timbro Sharing Economy Index-1fHemsidan.jpg

Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

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