Overlapping ownership and product innovation

Rune Stenbacka; Geert Van Moer

doi:10.1016/j.ijindorg.2023.102980

Overlapping ownership and product innovation

Rune Stenbacka^*, Geert Van Moer

^*Huvudförfattare för detta arbete

Nationalekonomi, Helsingfors

Forskningsoutput: Tidskriftsbidrag › Artikel › Vetenskaplig › Peer review

6 Citeringar (Scopus)

Sammanfattning

We characterize the effect of overlapping ownership (OO) on investments in drastic product innovation. The success probability of innovation increases with investment. We analyse two opposing forces: (1) OO induces firms to internalize that success on their own behalf erodes the rivals’ business, reducing investments; (2) OO softens competition in the product market, enhancing investments. Our analysis reveals that the competition-softening effect, by stimulating investments, can induce OO to benefit consumers, in particular when the R&D projects are complex. We also show that an incumbent technology raises the threshold required for OO to stimulate investments in innovation.

Originalspråk	Engelska
Artikelnummer	102980
Referentgranskad vetenskaplig tidskrift	International Journal of Industrial Organization
Volym	89
ISSN	0167-7187
DOI	https://doi.org/10.1016/j.ijindorg.2023.102980
Status	Publicerad - 09.06.2023
MoE-publikationstyp	A1 Originalartikel i en vetenskaplig tidskrift

Nyckelord

512 Företagsekonomi

FN:s SDG:er

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Overlapping ownership and product innovation

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