If all goes well with its February 28 filing with the Securities and Exchange Commission, Spotify will be the first firm to go public in the U.S. via a direct listing on a stock exchange. Simply put, this means that, rather than first selling a typical 10 percent to 30 percent of its shares outstanding to the general public (at a heavily discounted offering price), Spotify will immediately begin trading on the New York Stock Exchange. Up to $1 billion worth of shares will be supplied by existing shareholders of the firm and sold in the open market to new … Read more
Innovation is perhaps the single most important driver of productivity and growth. However, firms do not innovate in isolation but rather within an ecosystem of their technological peers, as many classic studies show. More recent work finds that a given firm’s innovation, productivity, and value increase as a result of technology spillovers from other firms.
Like knowledge spillovers generally, inventions have social value that can far exceed their private value to the inventor. Technological progress can create technologies not just for the inventor firm, but also for its peers. In a virtuous circle, the resulting technological progress of the peer … Read more