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Entry and Competitive Dynamics in the Mobile Telecommunications Market
Research Policy (2006)
  • Zi-lin He
  • Kwanghui Lim, Melbourne Business School
  • Poh-kam Wong, National University of singapore
Abstract

We propose an extension of the Gans–Stern [Gans, J.S., Stern, S., 2003. The product market and the market for “ideas”: commercialization strategies for technology entrepreneurs. Research Policy 32 (2), 333–350] framework that includes entry by existing firms. An incumbent firm possessing complementary assets and strong appropriability is in a formidable position [Teece, D.J., 1986. Profiting from technological innovation: implications for integration, collaboration, licensing, and public policy. Research Policy 15 (6), 285–305]. 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.

Keywords
  • Patent citations,
  • Knowledge flows,
  • Mobile telecommunications,
  • Intellectual property,
  • Complementary assets
Disciplines
Publication Date
2006
Citation Information
Zi-lin He, Kwanghui Lim and Poh-kam Wong. "Entry and Competitive Dynamics in the Mobile Telecommunications Market" Research Policy Vol. 35 Iss. 8 (2006)
Available at: http://works.bepress.com/kwanghui/2/