American Economic Review: Vol. 104 No. 5 (May 2014)

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Entrepreneurial Innovation: Killer Apps in the iPhone Ecosystem

Article Citation

Yin, Pai-Ling, Jason P. Davis, and Yulia Muzyrya. 2014. "Entrepreneurial Innovation: Killer Apps in the iPhone Ecosystem." American Economic Review, 104(5): 255-59.

DOI: 10.1257/aer.104.5.255

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.

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Authors

Yin, Pai-Ling (Stanford U)
Davis, Jason P. (INSEAD, Singapore)
Muzyrya, Yulia (U MI)

JEL Classifications

L26: Entrepreneurship
L63: Microelectronics; Computers; Communications Equipment
L86: Information and Internet Services; Computer Software
O31: Innovation and Invention: Processes and Incentives


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