Related papers: Disruptive firms
This study empirically investigates firms' incentives on the choice of product durability, and its social optimality, by developing a dynamic structural model of durable goods with forward-looking consumers and oligopolistic multi-product…
Poor economies not only produce less; they typically produce things that involve fewer inputs and fewer intermediate steps. Yet the supply chains of poor countries face more frequent disruptions---delivery failures, faulty parts, delays,…
Digital disruption introduces technology-enabled changes at a pace and scale that fundamentally shifts established ways in which we live and work. Given the impact of digital disruption can span the individual, organisational, industry and…
There are clear benefits associated with a particular consumer choice for many current markets. For example, as we consider here, some products might carry environmental or `green' benefits. Some consumers might value these benefits while…
Innovation and obsolescence describe dynamics of ever-churning and adapting social and biological systems, concepts that encompass field-specific formulations. We formalize the connection with a reduced model of the dynamics of the "space…
We study a model of innovation with a large number of firms that create new technologies by combining several discrete ideas. These ideas are created via private investment and spread between firms. Firms face a choice between secrecy,…
In today's era of innovation of technological progression, digitalisation has not only transformed individual lives but also has a prominent influence on business activities. The world is surviving in a global yet complex technological…
We present a macro-finance model with innovation and knowledge spillover. Skilled agents engage in R&D activities (establish firms) or work in the knowledge-intensive sector. Unskilled agents work in the traditional sector. Knowledge…
Firms' positions in innovation networks determine their access to external knowledge, yet how these positions shape technological search behavior and influence productivity remains underexplored. We propose that central network positions…
We develop an analytically tractable model featuring heterogeneous workers and firms, where labor markets clear through a one-to-many sorting mechanism. Firms determine both the number and composition of their employees, shaping (1) the…
A detailed empirical analysis of the productivity of non financial firms across several countries and years shows that productivity follows a non-Gaussian distribution with power law tails. We demonstrate that these empirical findings can…
This research paper focuses on how innovations support new market creation emerging from latent opportunities for low-income group. It also emphasizes on novel strategies that can be implemented for sustaining. The paper concludes with a…
The future of innovation processes is anticipated to be more data-driven and empowered by the ubiquitous digitalization, increasing data accessibility and rapid advances in machine learning, artificial intelligence, and computing…
We propose an evolutionary competition model to investigate the green transition of firms, highlighting the role of adjustment costs, dynamically adjusted transition risk, and green technology progress in this process. Firms base their…
I develop a simple Schumpeterian agent-based model where the entry and exit of firms, their productivity and markup, the birth of new industries and the social structure of the population are endogenous and use it to study the causes of…
Theories of scientific and technological change view discovery and invention as endogenous processes, wherein prior accumulated knowledge enables future progress by allowing researchers to, in Newton's words, "stand on the shoulders of…
The origin of economic crises is a key problem for economics. We present a model of long-run competitive markets to show that the multiplicity of behaviors in an economic system, over a long time scale, emerge as statistical regularities…
Our world is strongly driven by technological developments that continuously create new markets and shape individual taste and choice. The scale of dissemination of the most recent technological breakthroughs and the capability of creating…
Security and safety are intertwined concepts in the world of computing. In recent years, the terms "sustainable security" and "sustainable safety" came into fashion and are being used referring to a variety of systems properties ranging…
The key idea of this model is that firms are the result of an evolutionary process. Based on demand and supply considerations the evolutionary model presented here derives explicitly Gibrat's law of proportionate effects as the result of…