Technological Opportunities and New Firm Creation

Question 1

Formation depends on which factors?

Answer 1

as market structure or technology regime

Industry-level arguments hold when industries are young and composed of small firms and not R&D intensive.

Question 2

Three categories that influence the decision to exploit an invention through firm creation

Answer 2

• The nature of the individual making the decision
• The nature of the industry in which the opportunity would be exploited
• The nature of the opportunity

Question 3

Importance

Answer 3

Measures the magnitude of the economic value of an invention

Question 4

Radicalness

Answer 4

Measures that the degree to which an invention, differs from previous inventions I the field

Question 5

Patent Scope

Answer 5

The broader the scope of the patent, the higher the probability that the invention will be commercialized through the establishment of a new firm