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New product development and firm value in mobile handset production

  • Koski, Heli
  • Kretschmer, Tobias

We study the effect of new product introduction on firm value. Using a unique sample on mobile phone handset introduction by the 16 largest major handset manufacturers from 1992 to 2002, we distinguish between truly innovative product introduction and imitative 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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File URL: http://www.sciencedirect.com/science/article/B6V8J-4XV06RP-1/2/1e5159aff779c0fb86e46fbf26fd5f1c
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Article provided by Elsevier in its journal Information Economics and Policy.

Volume (Year): 22 (2010)
Issue (Month): 1 (March)
Pages: 42-50

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Handle: RePEc:eee:iepoli:v:22:y:2010:i:1:p:42-50
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505549

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  1. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, 05.
  2. Koski, Heli & Kretschmer, Tobias, 2006. "Innovation and Dominant Design in Mobile Telephone," Discussion Papers 1012, The Research Institute of the Finnish Economy.
  3. Paul A. David & Gavin Wright, . "General Purpose Technologies and Surges in Productivity: Historical Reflections on the Future of the ICT Revolution," Working Papers 99026, Stanford University, Department of Economics.
  4. Bronwyn Hall, 1998. "Innovation and Market Value," Economics Series Working Papers 1999-W03, University of Oxford, Department of Economics.
  5. Röller, Lars-Hendrik & Waverman, Leonard, 2000. "Telecommunications Infrastructure And Economic Development: A Simultaneous Approach," CEPR Discussion Papers 2399, C.E.P.R. Discussion Papers.
  6. Paul A. David & Gavin Wright, 2005. "General Purpose Technologies and Productivity Surges: Historical Reflections on the Future of the ICT Revolution," Economic History 0502002, EconWPA.
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