Endogenous spillovers, increased competition and re-organization waves

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Rodríguez, Diego. Endogenous spillovers, increased competition and re-organization waves. 1999
To cite or link this document: http://hdl.handle.net/10230/1108
dc.contributor.author Rodríguez, Diego
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 1999-01-01
dc.identifier.uri http://hdl.handle.net/10230/1108
dc.description.abstract We consider an entrepreneur that is the sole producer of a cost reducing skill, but the entrepreneur that hires a team to use the skill cannot prevent collusive trade for the innovation related knowledge between employees and competitors. We show that there are two types of diffusion avoiding strategies for the entrepreneur to preempt collusive communication i) setting up a large productive capacity (the traditional firm) and ii) keeping a small team (the lean firm). The traditional firm is characterized by its many "marginal" employees that work short days, receive flat wages and are incompletely informed about the innovation. The lean firm is small in number of employees, engages in complete information sharing among members, that are paid with stock option schemes. We find that the lean firm is superior to the traditional firm when technological entry costs are low and when the sector is immature.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 352
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Endogenous spillovers, increased competition and re-organization waves
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2016-06-04T02:50:25Z
dc.subject.keyword Microeconomics
dc.subject.keyword information sharing
dc.subject.keyword endogenous spillovers
dc.subject.keyword physical assets
dc.subject.keyword corporate transformation
dc.subject.keyword stock-options
dc.subject.keyword collussion
dc.subject.keyword trade secrets
dc.rights.accessRights info:eu-repo/semantics/openAccess

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