Conventional wisdom has consistently argued that innovation is fostered by, or at least related to, firm size and industry structure. There are two schools of thought. On the one side are the Schumpeterians, arguing that developing markets and large firms are the driving forces behind innovation. Their logic is based on the belief that the more competitive the market structure, the smaller are the gains to innovation. Only by having the carrot of large potential profits can firms be induced to innovate. This logic is the basis of almost all existing patent and copyright law. The opposite view (Robertson, 1984) holds that innovation is fostered by the desire to enter and compete in competitive markets. The driving force to innovate is survival as competitors encroach on one’s market. According to this viewpoint it is the stick of annihilation that drives innovation.