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Modularity and Product Innovation in Digital Markets

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Author Info
Marc Bourreau (ENST, Paris, France and CREST-LEI)
Pinar Dogan () (John F. Kennedy School of Government, Harvard University)
Matthieu Manant (ENST, Paris, France)

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Abstract

Most digital goods have a modular design; that is, they consist of complementary and distinct building blocks, called modules. Modular product design, in contrast to integrated (or integral) design, enables alteration of a specific module that is usually assigned for a specific function without necessarily requiring an entire redesign of the product. This feature facilitates product innovation. The possibility of having common modules embedded in a range of products is likely to affect firms' product innovation strategies and post-innovation competition both in traditional and digital markets. In this paper, we explore such effects with a focus on digital markets.

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Publisher Info
Article provided by Concept Economics in its journal Review of Network Economics.

Volume (Year): 6 (2007)
Issue (Month): 2 (June)
Pages: 175-193
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Handle: RePEc:rne:rneart:v:6:y:2007:i:2:p:175-193

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Related research
Keywords: Digital; modular; integrated; innovation.;

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References listed on IDEAS
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Cited by:
(explanations, 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.)

  1. Eric Brousseau & Thierry Penard, 2007. "The Economics of Digital Business Models: A Framework for Analyzing the Economics of Platforms," Review of Network Economics, Concept Economics, vol. 6(2), pages 81-114, June. [Downloadable!]
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