Abstract
We study the infrastructure that can help explain the emergence of experimental markets (e.g., markets with both unclear institutional and technological trajectories). China’s rise as the commercial drone industry leader is an indicative example of such a market. We find that market-input infrastructure that clarifies know-how needed for inputs has a greater association with upstream founding (component firms). Market-output infrastructure that clarifies market fit for resulting products has a greater association with downstream founding (end product firms). These effects are substitutive; local governments focus only on one of these forms of market infrastructure to reduce the risks involved in such experimentation and to reduce competition with other cities. Finally, the institutional infrastructure that clarifies the rules increase founding, especially in cities with more market infrastructure.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
