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Modularity and Product Innovation in Digital Markets

Author

Listed:
  • Bourreau Marc

    (ENST, Paris, France and CREST-LEI)

  • Dogan Pinar

    () (John F. Kennedy School of Government, Harvard University)

  • Manant Matthieu

    (ENST, Paris, France)

Abstract

Most digital goods have a modular design; that is, they consist of complementary and distinct building blocks, called modules. Modular product design, in contrast to integrated (or integral) design, enables alteration of a specific module that is usually assigned for a specific function without necessarily requiring an entire redesign of the product. This feature facilitates product innovation. The possibility of having common modules embedded in a range of products is likely to affect firms' product innovation strategies and post-innovation competition both in traditional and digital markets. In this paper, we explore such effects with a focus on digital markets.

Suggested Citation

  • Bourreau Marc & Dogan Pinar & Manant Matthieu, 2007. "Modularity and Product Innovation in Digital Markets," Review of Network Economics, De Gruyter, vol. 6(2), pages 1-19, June.
  • Handle: RePEc:bpj:rneart:v:6:y:2007:i:2:n:6
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    Cited by:

    1. Gauguier, Jean-Jacques, 2009. "L’industrialisation de l’Open Source," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/4388 edited by Toledano, Joëlle.
    2. Marc Bogdanowicz & Giuditta de Prato & Daniel Nepelski & Jean-Paul Simon & Wainer Lusoli, 2010. "Born Digital / Grown Digital: Assessing the Future Competitiveness of the EU Video Games Software Industry," JRC Working Papers JRC60711, Joint Research Centre (Seville site).

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