Glu mo bile a maker o f o nline games launched f if

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Unformatted text preview: pring 2003. Is This Good for Innovation? Critics o f f irms that leverage pro prietary standards f o r market do minance o f ten co mplain that netwo rk ef f ects are bad f o r inno vatio n. But this statement isn’t entirely true. While netwo rk ef f ects limit co mpetitio n against the do minant standard, inno vatio n w ithin a standard may actually blo sso m. Co nsider Windo ws. Micro so f t has a huge advantage in the deskto p o perating system market, so f ew rivals try to co mpete with it. Apple’s Mac OS and the o pen so urce Linux o perating system are the f irm’s o nly credible rivals, and bo th have tiny market shares. But the do minance o f Windo ws is a magnet f o r develo pers to inno vate within the standard. P ro grammers with no vel ideas are willing to make the investment in learning to write so f tware f o r Windo ws because they’re sure that a Windo ws versio n can be used by the o verwhelming majo rity o f co mputer users. By co ntrast, lo o k at the mess we initially had in the mo bile pho ne market. With so many dif f eren...
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