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Entrepreneurial Innovation: Killer Apps in the iPhone Ecosystem

Author

Listed:
  • Pai-Ling Yin
  • Jason P. Davis
  • Yulia Muzyrya

Abstract

The mobile applications (apps) industry has exhibited rapid entry and growth in the midst of a recession. Using unique data from the iPhone application ecosystem, we examine how the development of "killer apps" (apps appearing in the top grossing rank) varies by market and app characteristics. We find that previous app experience and no updating increase the likelihood of becoming a killer game app, while more updates increase the likelihood of becoming a non-game killer app. Development opportunities, level of competition, and demand preferences are possible drivers of the opposing innovation process results in game and non-game markets.

Suggested Citation

  • Pai-Ling Yin & Jason P. Davis & Yulia Muzyrya, 2014. "Entrepreneurial Innovation: Killer Apps in the iPhone Ecosystem," American Economic Review, American Economic Association, vol. 104(5), pages 255-259, May.
    • Handle: RePEc:aea:aecrev:v:104:y:2014:i:5:p:255-59
    Note: DOI: 10.1257/aer.104.5.255
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    References listed on IDEAS

    as
    1. Joshua S. Gans & David H. Hsu & Scott Stern, 2002. "When Does Start-Up Innovation Spur the Gale of Creative Destruction?," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 571-586, Winter.
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    More about this item

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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