ABSTRACT : We study the effect of new product introduction on firm value. Using a unique sample on mobile phone handset introduction by 16 major handset manufacturers over 10 years, we distinguish between imitative product introduction and truly innovative product introduction. We find that while most product introduction is imitative, both types of innovation increase firm value. However, truly innovative innovation is found to increase firm value by more than imitative introductions.
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Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number
1174.
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