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Time-cost substitutability, earlycutting threat, and innovation timing

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  • Wang, Rong-Kuan
  • Hu, Die

Abstract

With time-cost substitutability, a potential imitator could threat to “earlycut” the innovator by increasing experimental intensity. The earlycutting threat or uncertainty about the potential imitator’s experimental cost advantage usually drives down the new product’s quality but advances its launching date.

Suggested Citation

  • Wang, Rong-Kuan & Hu, Die, 2017. "Time-cost substitutability, earlycutting threat, and innovation timing," Economics Letters, Elsevier, vol. 156(C), pages 88-91.
    • Handle: RePEc:eee:ecolet:v:156:y:2017:i:c:p:88-91
    DOI: 10.1016/j.econlet.2017.04.023
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Innovation timing; Quality development; Time-cost substitutability; Experimental intensity; Earlycutting;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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