Being the best or being the only one – Dichotomous R&D strategy choices by startups aiming for acquisition
研究了一个模型，其中现有企业和无法进入市场的初创企业选择研发项目的投资水平和激进程度，现有企业商业化最有价值的项目并在必要时收购初创企业，初创企业有两种局部最优策略：追求最有价值的项目或追求唯一成功的项目。
We characterize optimal R&D strategies in a model where an incumbent and a startup with no possibility to enter the market choose both investment level and radicalness of their R&D projects. The incumbent commercializes the most valuable project, and, where necessary, acquires the startup. The startup has two locally optimal strategies: A “high quality” and a “low cost” strategy where it aims for having the most valuable and the only successful R&D project, respectively. The struggle for rents inside the innovation system results in an inefficient portfolio of projects compared to the R&D choices that a monopolist would make.