University College London
NBER Working Papers and Publications
|March 2018||Control Versus Execution: Endogenous Appropriability and Entrepreneurial Strategy|
with Joshua S. Gans, Scott Stern: w24448
This paper considers the role of Rosenbergian uncertainty (i.e., economic uncertainties that arise after successful invention) in shaping appropriability for start-up innovators. Rather than assuming that the appropriability regime surrounding an innovation is exogenous, we focus on the endogenous choice entrepreneurs face between investing in ensuring control-based appropriability versus investing in the execution and operation of their fledgling businesses. Investment in execution allows entrepreneurs to advance more quickly than competitors, while control requires delays in commercialization. Control and execution are strategic substitutes as they represent alternative paths to earning future rents. Because the size and likelihood of these rents is uncertain, entrepreneurs may be un...
Published: Kenny Ching & Joshua Gans & Scott Stern, 2019. "Control versus execution: endogenous appropriability and entrepreneurial strategy," Industrial and Corporate Change, vol 28(2), pages 389-408. citation courtesy of