Journal ArticleDOI
A Theory of Innovation and Its Effects
TLDR
In this article, the theory of optimal sequential search is used to study an industry where firms make homogeneous products and seek lower costs of production, and the research results are regarded as drawings from a probability distribution that depends on the research outlays.Abstract:
The theory of optimal sequential search is used to study an industry where firms make homogeneous products and seek lower costs of production. Research outlays correspond to the cost of search. The research results are regarded as drawings from a probability distribution that depends on the research outlays. Eventually, the production costs are so low, continuing the research no longer pays, the research era ends, and the mature era begins. Sequential research results in a cost level at the end of the research era and beginning of the mature era that is lower, the smaller the number of firms then in the industry. Firm market share and rate of return are positively related. The firm with the largest share during the research era retains its lead throughout, and its share tends to fall at a rate that is slower, the larger its share initially.read more
Citations
More filters
Book ChapterDOI
Chapter 14 The timing of innovation: Research, development, and diffusion
TL;DR: In this paper, the authors examined the extent and timing of the dissemination of a particular innovation and examined the way the expected benefits, the cost of research and development, and interactions among competing firms combine to determine the pattern of expenditure across firms and over time, the date of introduction, and the identity of the innovating firm.
Journal ArticleDOI
The Evolution of New Industries and the Determinants of Market Structure
TL;DR: In this article, empirical regularities concerning firm growth rates and industry firm-size distributions have been developed by studying primarily mature industries and the primary purpose of this article is to bring together and extend empirical regularalities on the evolution of new industries and to use these regularities to gain further insight into the forces governing industry evolution.
ReportDOI
Patents as Options: Some Estimates of the Value of Holding European Patent Stocks
TL;DR: In this paper, the authors used data on the proportion of patents renewed, and the renewal fees faced by, post World War II cohorts of patents in France, the United Kingdom, and Germany, in conjunction with a model of patent holders' renewal decisions, to estimate the returns earned from holding patents in these countries.
Journal ArticleDOI
On Patents, R & D, and the Stock Market Rate of Return
TL;DR: In this paper, the authors investigate the dynamic relationships among the number of successful patent applications of firms, a measure of the firm's investment in inventive activity (its R & D expenditures), and an indicator of its inventive output (the stock market value of the firms).
References
More filters
Book
Capitalism, Socialism and Democracy
TL;DR: In this paper, the authors present a history of the first half of the 20th century, from 1875 to 1914, of the First World War and the Second World War.
Book
An introduction to probability theory
TL;DR: The authors introduce probability theory for both advanced undergraduate students of statistics and scientists in related fields, drawing on real applications in the physical and biological sciences, and make probability exciting." -Journal of the American Statistical Association
Book
Barriers to new competition
TL;DR: In this paper, a series of hypotheses as to the conditions of entry, and the probable degree to which they serve as barriers to new competition are presented, and a bold attempt is made to measure the height of these barriers in 20 manufacturing industries.