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Demand Driven Innovation and Uncertainty: Evidence from diffusion of flat panel TV (Japanese)

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  • UNAYAMA Takashi
  • KEIDA Masayuki

Abstract

In a case-study, we show that developing new goods is constrained by demand uncertainty. It was believed that knowing "needs" would be critical for R&D investment decisions, and thus developing new goods. However, although the need for flat panel televisions was known for many years, they were not developed for a long time. It was not a limitation of technology but demand uncertainty that prevented the innovation. The implication of this case study is that reducing uncertainty is effective in promoting innovation.

Suggested Citation

  • UNAYAMA Takashi & KEIDA Masayuki, 2010. "Demand Driven Innovation and Uncertainty: Evidence from diffusion of flat panel TV (Japanese)," Discussion Papers (Japanese) 10005, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:rdpsjp:10005
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