What Motivates Start-up Firms When Innovations are Sequential?

Abstract

This paper presents a dynamic analysis of the interaction between incumbent firms and successful new entrepreneurs, that can provide R&D incentives when innovations are cumulative/sequential. It is argued that the insights of the basic model extend to varying market structures and regulatory environments.

Keywords

• Sequential Innovation(순차적인 혁신)
• Patent(특허권)
• Venture Capital(위험부담자본)