IPRIA Working Paper Series
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Intellectual Property Research Institute of Australia Working Paper No. 11/2006 Entry and Competitive Dynamics in the Mobile Telecommunications Market by Zi-Lin He, Kwanghui Lim, and Poh-Kam Wong Date: July 2006 Abstract: “We propose an extension of the Gans-Stern (2003) framework that includes entry by existing firms. An incumbent firm possessing complementary assets and strong appropriability is in a formidable position (Teece, 1986). However, a de alio entrant can leverage complementary assets to enter along a new technological trajectory, and then develop appropriability. We illustrate how several mobile telecommunications firms (Ericsson, Nokia and Samsung) pursued this strategy to catch up with the market leader (Motorola). We also identify several shortcomings in Motorola’s approach: it was too inward-looking in developing technologies, but ironically not inward-looking enough in exploiting its most valuable patents.” Downloads: PDF [320K] |
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