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A Microeconometric note on product innovation and product innovation advertising

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Author Info
Ulrich Kaiser

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Abstract

This paper seeks to explain why more than half of the German service sector firms that introduce a product innovations do not advertise their new or markedly improved product. One part of the explanation is that they do not need to advertise because they are closely related to their customers anyway, and another part of the explanation is that product innovation and product innovation advertising are strategic substitutes.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 14 (2005)
Issue (Month): 7 (October)
Pages: 573-582
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Handle: RePEc:taf:ecinnt:v:14:y:2005:i:7:p:573-582

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Related research
Keywords: Strategic substitutes; Product innovation; Product innovation advertising; Service sector; Bivariate probit model with selectivity;

References listed on IDEAS
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. Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-306, December. [Downloadable!] (restricted)
  2. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-28, June. [Downloadable!] (restricted)
  3. Holmstrom, Bengt & Milgrom, Paul, 1994. "The Firm as an Incentive System," American Economic Review, American Economic Association, vol. 84(4), pages 972-91, September. [Downloadable!] (restricted)
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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. Winghan Kwong & Edward Norton, 2007. "The Effect of Advertising on Pharmaceutical Innovation," Review of Industrial Organization, Springer, vol. 31(3), pages 221-236, November. [Downloadable!] (restricted)
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This page was last updated on 2009-12-21.

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