Global spillover effects determine market takeovers, revolutionizing high-tech competition.
The article explores how local and global spillover effects impact the market shares of firms in a high-tech industry. Firms' production costs are influenced by the number of local and foreign competitors. The study shows that market takeovers by one population can occur abruptly due to changes in the basins of attraction. Importing know-how from the other population is often more beneficial for market dominance than increasing local spillover effects.