Innovation and Dominant Design in Mobile Telephony
AbstractWe document the evolution of product innovation and features in the mobile telephone handset market. We distinguish between two types of product innovation: vertical and horizontal innovation. Using data on mobile telephone handsets from 1990 to 2003, we study the emergence of a dominant design in vertical and horizontal innovations and find that, while vertical product characteristics converged to some extent, no dominant design emerged. For horizontal product characteristics, some horizontal innovations remained differentiated, whereas others were adopted in all new handset models, thus forming a dominant design in horizontal product features. We explain this pattern using the concept of dominant design and results from the theoretical literature on the incentives for horizontal and vertical differentiation.
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.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Industry and Innovation.
Volume (Year): 14 (2007)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CIAI20
Other versions of this item:
- Koski, Heli & Kretschmer, Tobias, 2006. "Innovation and Dominant Design in Mobile Telephone," Discussion Papers 1012, The Research Institute of the Finnish Economy.
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
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.:
- Tobias Kretschmer & Katrin Muehlfeld, 2004. "Co-opetition in Standard-Setting: The Case of the Compact Disc," Working Papers 04-14, NET Institute, revised Oct 2004.
- Liikanen, Jukka & Stoneman, Paul & Toivanen, Otto, 2004. "Intergenerational effects in the diffusion of new technology: the case of mobile phones," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1137-1154, November.
- Darren Filson, .
"Product and Process Innovations in the Life Cycle of an Industry,"
Claremont Colleges Working Papers
2000-30, Claremont Colleges.
- Filson, Darren, 2002. "Product and process innovations in the life cycle of an industry," Journal of Economic Behavior & Organization, Elsevier, vol. 49(1), pages 97-112, September.
- Clayton M. Christensen & Fernando F. Suárez & James M. Utterback, 1998. "Strategies for Survival in Fast-Changing Industries," Management Science, INFORMS, vol. 44(12-Part-2), pages S207-S220, December.
- Heli Koski & Tobias Kretschmer, 2004.
"Survey on Competing in Network Industries: Firm Strategies, Market Outcomes, and Policy Implications,"
Journal of Industry, Competition and Trade,
Springer, vol. 4(1), pages 5-31, 03.
- Heli Koski & Tobias Kretschmer, 2004. "Survey on competing in network industries : firm strategies, market outcomes, and policy implications," LSE Research Online Documents on Economics 803, London School of Economics and Political Science, LSE Library.
- Gandal, Neil & Salant, David & Waverman, Leonard, 0. "Standards in wireless telephone networks," Telecommunications Policy, Elsevier, vol. 27(5-6), pages 325-332, June.
- Neven, D. & Thisse, J-F., 1989. "On Quality And Variety Competition," CORE Discussion Papers 1989020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Heli Koski & Tobias Kretschmer, 2004.
"Entry, Standards and Competition: Firm Strategies and the Diffusion of Mobile Telephony,"
Review of Industrial Organization,
Springer, vol. 26(1), pages 89-113, November.
- Heli Koski & Tobias Kretschmer, 2005. "Entry, standards and competition : firm strategies and the diffusion of mobile telephony," LSE Research Online Documents on Economics 801, London School of Economics and Political Science, LSE Library.
- Koski, Heli & Kretschmer, Tobias, 2002. "Entry, Standards and Competition : Firm Strategies and the Diffusion of Mobile Telephony," Discussion Papers 824, The Research Institute of the Finnish Economy.
- Degryse, Hans, 1996.
"On the Interaction between Vertical and Horizontal Product Differentiation: An Application to Banking,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 44(2), pages 169-86, June.
- Degryse, H.A., 1996. "On the interaction between vertical and horizontal product differentiation: An application to banking," Open Access publications from Tilburg University urn:nbn:nl:ui:12-72562, Tilburg University.
- Shaked, Avner & Sutton, John, 1982. "Relaxing Price Competition through Product Differentiation," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 3-13, January.
- Lehrer, Mark, 2004. "National lead markets and the design competition for 3G network applications," Journal of Business Research, Elsevier, vol. 57(12), pages 1397-1401, December.
- Reinganum, Jennifer R., 1982.
"Uncertain Innovation and the Persistence of Monopoly,"
431, California Institute of Technology, Division of the Humanities and Social Sciences.
- Reinganum, Jennifer F, 1983. "Uncertain Innovation and the Persistence of Monopoly," American Economic Review, American Economic Association, vol. 73(4), pages 741-48, September.
- Czarnitzki, Dirk & Kraft, Kornelius, 2000.
"An empirical test of the asymmetric models on innovative activity: who invests more into R&D - the incumbent or the challenger?,"
ZEW Discussion Papers
00-10, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Czarnitzki, Dirk & Kraft, Kornelius, 2004. "An empirical test of the asymmetric models on innovative activity: who invests more into R&D, the incumbent or the challenger?," Journal of Economic Behavior & Organization, Elsevier, vol. 54(2), pages 153-173, June.
- Rebecca Henderson, 1993. "Underinvestment and Incompetence as Responses to Radical Innovation: Evidence from the Photolithographic Alignment Equipment Industry," RAND Journal of Economics, The RAND Corporation, vol. 24(2), pages 248-270, Summer.
- Heli Koski & Tobias Kretschmer, 2004. "Competing in Network Industries--A Rejoinder," Journal of Industry, Competition and Trade, Springer, vol. 4(1), pages 67-69, 03.
- Geroski, Paul, 2003. "The Evolution of New Markets," OUP Catalogue, Oxford University Press, number 9780199248896, September.
- 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.
- Robert Axelrod & Will Mitchell & Robert E. Thomas & D. Scott Bennett & Erhard Bruderer, 1995. "Coalition Formation in Standard-Setting Alliances," Management Science, INFORMS, vol. 41(9), pages 1493-1508, September.
- Koski, Heli & Kretschmer, Tobias, 2009.
"New Product Development and Firm Value in Mobile Handset Production,"
1174, The Research Institute of the Finnish Economy.
- Koski, Heli & Kretschmer, Tobias, 2010. "New product development and firm value in mobile handset production," Information Economics and Policy, Elsevier, vol. 22(1), pages 42-50, March.
- Koski, Heli & Kretchmer, Tobias, 2009. "The Role of Product Innovation on the Diffusion of Mobile Telephone," Discussion Papers 1200, The Research Institute of the Finnish Economy.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.