Are new firms an important source of innovation? Evidence from the PC software industry.

Name: Are new firms an important source of innovation? Evidence from the PC software industry.
Cite: 35 Economics Letters 339
Year: 1991
Bluebook cite: Thomas J. Prusa And James A. Schmitz Jr., Are New Firms An Important Source Of Innovation? Evidence From The Pc Software Industry., 35 Economics Letters 339 ( 1991)
Author: Thomas J. Prusa And James A. Schmitz Jr.
URL: http://econweb.rutgers.edu/prusa/cv/03%20-%20new%20firms%20innovation.pdf
Item Type: article
Summary: We examine data from the PC software industry to determine if new forms play an important fole in the advance of technology in this industry over the period 1982-1987. We find that the new firms have a comparative advantage (over established firms) in creating new software categories, while established firms have a comparative advantage in developing subsequent improvements in existing categories.

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