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The Product Market and the Market for 'Ideas': Commercialization Strategies for Technology Entrepreneurs

36 Pages Posted: 20 Jul 2002  

Joshua S. Gans

University of Toronto - Rotman School of Management; NBER

Scott Stern

Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Date Written: June 22, 2002

Abstract

This paper presents a synthetic framework identifying the central drivers of start-up commercialization strategy and the implications of these drivers for industrial dynamics. We link strategy to the commercialization environment - the microeconomic and strategic conditions facing a firm that is translating an "idea" into a value proposition for customers. The framework addresses why technology entrepreneurs in some environments undermine established firms, while others cooperate with incumbents and reinforce existing market power. Our analysis suggests that competitive interaction between start-up innovators and established firms depends on the presence or absence of a "market for ideas." By focusing on the operating requirements, efficiency, and institutions associated with markets for ideas, this framework holds several implications for the management of high-technology entrepreneurial firms.

Keywords: commercialization, start-up, entrepreneurs, innovation strategy, ideas market

JEL Classification: L1

Suggested Citation

Gans, Joshua S. and Stern, Scott, The Product Market and the Market for 'Ideas': Commercialization Strategies for Technology Entrepreneurs (June 22, 2002). Available at SSRN: https://ssrn.com/abstract=317219 or http://dx.doi.org/10.2139/ssrn.317219

Joshua S. Gans

University of Toronto - Rotman School of Management ( email )

Canada

HOME PAGE: http://www.joshuagans.com

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Scott Stern (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

Cambridge, MA 02142
United States
617-253-3053 (Phone)
617-253-2660 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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