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Market Diffusion of Industrial Products and Regulatory Barriers to Adoption: The Case of Satellites

Author

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  • Victor Dos Santos Paulino
  • Sveinn Vidar Gudmundsson

Abstract

The purpose of this study is to explain the market diffusion of satellites by exploring how early adopters raise regulatory barriers to adoption. Such influence of early adopters has not been explored significantly in the literature analyzing market diffusion of industrial products. In this paper, we adopt a macro and longitudinal approach to study the case of the satellites market from 1959 to 2017. The results indicate that early adopters raise regulatory barriers that hinder market takeoff and therefore the entry of mainstream adopters. Overall, the findings show that early adopters can extend the introduction stage over decades during which time they can shape markets to their strategic goals. JEL Codes: L10, L20, L90, N70, O30

Suggested Citation

  • Victor Dos Santos Paulino & Sveinn Vidar Gudmundsson, 2021. "Market Diffusion of Industrial Products and Regulatory Barriers to Adoption: The Case of Satellites," Journal of Innovation Economics, De Boeck Université, vol. 0(3), pages 117-138.
    • Handle: RePEc:cai:jiedbu:jie_pr1_0097
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    Cited by:

    1. Pierre Barbaroux & Victor Santos Paulino, 2022. "Why do motives matter? A demand-based view of the dynamics of a complex products and systems (CoPS) industry," Journal of Evolutionary Economics, Springer, vol. 32(4), pages 1175-1204, September.

    More about this item

    Keywords

    Diffusion of Innovations; Barriers to Entry; Regulation; Industrial Products; Market Dynamics; Longitudinal Study;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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