Adoption of Product and Process Innovations in Differentiated Markets: The Impact of Competition
AbstractThe paper examines the effects of the degree of competition on firms'decisions to innovate in differentiated markets. Firms favor productinnovations if they produce close substitutes (so competition is severe) andfavor process innovations if products are differentiated (so competition isless severe). Assumptions on the strategic complementarity of product andprocess innovations and on the decreasing returns of a product innovationare found to be the critical assumptions in the sense of Milgrom and Roberts (1994). Copyright Kluwer Academic Publishers 2003
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Review of Industrial Organization.
Volume (Year): 23 (2003)
Issue (Month): 3 (December)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100336
Competition; process and product innovation; product differentiation;
Other versions of this item:
- Pia Weiss, 2003. "Adoption of Product and Process Innovations in Differentiated Markets: The Impact of Competition," Review of Industrial Organization, Springer, vol. 23(3_4), pages 301-314, December.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Milgrom, Paul & Roberts, John, 1994. "Comparing Equilibria," American Economic Review, American Economic Association, vol. 84(3), pages 441-59, June.
- Rosenkranz, Stephanie, 1995. "Innovation and cooperation under vertical product differentiation," International Journal of Industrial Organization, Elsevier, vol. 13(1), pages 1-22, March.
- Greenstein, Shane & Ramey, Garey, 1998. "Market structure, innovation and vertical product differentiation," International Journal of Industrial Organization, Elsevier, vol. 16(3), pages 285-311, May.
- Rosenkranz, Stephanie, 2003. "Simultaneous choice of process and product innovation when consumers have a preference for product variety," Journal of Economic Behavior & Organization, Elsevier, vol. 50(2), pages 183-201, February.
- Bonanno, Giacomo & Haworth, Barry, 1998. "Intensity of competition and the choice between product and process innovation," International Journal of Industrial Organization, Elsevier, vol. 16(4), pages 495-510, July.
- Boone, Jan, 2001. "Intensity of competition and the incentive to innovate," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 705-726, April.
- Bester, H. & Petrakis, E., 1991.
"The Incentives for Cost Reduction in a Differentiated Industry,"
1991-36, Tilburg University, Center for Economic Research.
- Bester, Helmut & Petrakis, Emmanuel, 1993. "The incentives for cost reduction in a differentiated industry," International Journal of Industrial Organization, Elsevier, vol. 11(4), pages 519-534.
- Bester, H. & Petrakis, E., 1991. "The Incentives for Cost Reduction in a Differentiated Industry," Papers 9136, Tilburg - Center for Economic Research.
- Cellini, Roberto & Lambertini, Luca & Sterlacchini, Alessandro, 2009.
"Managerial incentive and the firms’ propensity to invest in product and process innovation,"
12935, University Library of Munich, Germany.
- R. Cellini & L. Lambertini & A. Sterlacchini, 2009. "Managerial incentive and the firms' propensity to invest in product and process innovation," Working Papers 655, Dipartimento Scienze Economiche, Universita' di Bologna.
- Murat Yildizoglu (GREThA) & Mohamed AYADI (UAQUAP, Université de Tunis) & Mohieddine RAHMOUNI (UAQUAP et GREThA), 2007. "Sectoral patterns of innovation in a developing country: The Tunisian case," Cahiers du GREThA 2007-19, Groupe de Recherche en Economie Théorique et Appliquée.
- Yu-Shan Su & Eric Tsang & Mike Peng, 2009. "How do internal capabilities and external partnerships affect innovativeness?," Asia Pacific Journal of Management, Springer, vol. 26(2), pages 309-331, June.
- Luisa Carvalho & Teresa Costa & Jorge Caiado, 2012. "Determinants of innovation in a small open economy: A multidimensional perspective," CEMAPRE Working Papers 1201, Centre for Applied Mathematics and Economics (CEMAPRE), School of Economics and Management (ISEG), Technical University of Lisbon.
- James G. Mulligan & Nilotpal Das, 2005. "Persistent Adoption of Time-Saving Process Innovations," Working Papers 05-03, University of Delaware, Department of Economics.
- Sebastian Braun, 2007.
"Trade Liberalisation, Process and Product Innovation, and Relative Skill Demand,"
SFB 649 Discussion Papers
SFB649DP2007-001, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Sebastian Braun, 2006. "Trade Liberalisation, Process and Product Innovation, and Relative Skill Demand," JEPS Working Papers 06-004, JEPS.
- Maria JOSE SILVA & Gastão SOUSA & Jacinta MOREIRA & Jorge SIMÕES, 2011. "Innovation Activities in the Service Sector: Empirical Evidence from Portuguese Firms," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(6), pages 17, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.