Entry and competitive dynamics in the mobile telecommunications market

Abstract

We propose an extension of the Gans-Stern [Gans, J.S., Stern, S., 2003. The product market and the market for "ideas": commercialization strategies for technology entrepreneurs. Research Policy 32 (2), 333-350] framework that includes entry by existing firms. An incumbent firm possessing complementary assets and strong appropriability is in a formidable position [Teece, D.J., 1986. Profiting from technological innovation: implications for integration, collaboration, licensing, and public policy. Research Policy 15 (6), 285-305]. However, a de alio entrant can leverage complementary assets to enter along a new technological trajectory, and then develop appropriability. We illustrate how sever..