We examine two views of the creation of venture-backed start-ups, or " entrepreneurial spawning. " In one, young firms prepare employees for entrepreneurship, educating them about the process, and exposing them to relevant networks. In the other, individuals become entrepreneurs when large bureaucratic employers do not fund their ideas. Controlling for firm… (More)
We analyze the evolution of four new products that experienced an initial rise and then extreme shakeout in their number of manufacturers: automobiles, tires, televisions, and penicillin. Data on entry, exit, and innovation are collected for each product to test theories of industry shakeouts. Hazard analyses indicate that earlier entrants had persistently… (More)
The evolution of the geographic distribution of producers in the television receiver and automobile industries is analyzed. Both industries experienced sharp shakeouts and evolved to be oligopolies, suggestive of increasing returns. The television receiver industry was initially concentrated regionally but evolved to be more dispersed over time. In… (More)
We construct a model of industry evolution in which the central force for change is the creation and destruction of submarkets. Firms expand when they are able to exploit new opportunities that arrive in the form of submarkets; they contract and ultimately exit when the submarkets in which they operate are destroyed. This simple framework can transparently… (More)
While prior research has considered the desirability and implications of employee mobility, less research has considered factors affecting the ease of mobility. This paper explores a legal constraint on mobility —employee noncompete agreements—by exploiting Michigan's apparently-inadvertent 1985 reversal of its enforcement policy as a natural experiment.… (More)
We examine how the local availability of offline retail options drives use of the online channel and consequently how the convenience, selection, and price advantages of the online channel may vary by geographic location. In particular, we examine the effect of local store openings on online book purchases in that location. We explore this problem using… (More)
Technology Mini-Conference for helpful comments. The authors also thank the attorneys at various pharmaceutical and law firms for providing their insights and experiences in interviews as well as Romel Mostafa for research assistance. All remaining errors are the responsibility of the authors. Authors' names are listed alphabetically. Abstract Considerable… (More)
many seminar participants for comments. We also thank Harte Hanks Market Intelligence for supplying data. We received funding from the Kellogg School of Management, SSHRC grant #538-02-1013, and the GM Strategy Center. All opinions and errors are ours alone.