Process and Product Innovation: A Differential Game - Approach to Product Life Cycle

Topics:
Product Life Cycles
Tags:
Game,
Strategy,
Sales Force Management,
Sales,
Product Life Cycle,
Product Innovation,
Management,
Leadership,
Innovation,
Incentive,
...
Source:
University of Bologna

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Overview: This paper investigates the timing of adoption of product and process innovation by using a differential game in which firms may invest in both activities. The paper considers horizontal product innovation that reduces product substitutability, and process innovation that reduces marginal cost. It demonstrates that the incentive for cost-reducing investment is relatively higher than the incentive to increase product differentiation.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 302KB | Date: Jan 2005 | Pages: 32

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