Innovation and Dominant Design in Mobile Telephone
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 from 1990 - 2003, we find that some characteristics have subsequently become an industry standard, while some remained as horizontally differentiating features of mobile handsets. We explain this pattern using the concept of dominant design, and results from the theoretical literature on the incentives for horizontal and vertical differentiation
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Bibliographic InfoPaper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1012.
Length: 31 pages
Date of creation: 2006
Date of revision:
Other versions of this item:
- Heli Koski & Tobias Kretschmer, 2007. "Innovation and Dominant Design in Mobile Telephony," Industry and Innovation, Taylor & Francis Journals, vol. 14(3), pages 305-324.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-04-22 (All new papers)
- NEP-INO-2006-04-22 (Innovation)
- NEP-MIC-2006-04-22 (Microeconomics)
- NEP-TID-2006-04-22 (Technology & Industrial Dynamics)
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