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NBER Working Papers and Publications
|December 2005||Platform Owner Entry and Innovation in Complementary Markets: Evidence from Intel|
with Rebecca Henderson: w11852
This paper draws on a detailed history of Intel's strategy with respect to the complementary markets for microprocessors to explore the usefulness of the current theoretical literature for explaining behavior. We find that as the literature predicts, Intel invests heavily in these markets, both through direct entry and through subsidy. We also find, again consistent with the literature, that the firm's entry decisions are shaped by the belief that it does not have either the capabilities or the resources to enter all possible markets, and thus that it believes it is critical to encourage widespread entry. As several authors have pointed out, this imperative places the firm in a difficult strategic position, since it needs to attempt to commit to potential entrants that it will not engage i...
Published: Gawer, Annabelle and Rebecca Henderson. "Platform Owner Entry and Innovation in Complementary Markets: Evidence from Intel." Journal of Economics and Management Strategy 16, 1 (spring 2007): 1-34. citation courtesy of