IDEAS home Printed from https://ideas.repec.org/a/ucp/jnlbus/v78y2005i3p1049-1072.html
   My bibliography  Save this article

The Strategic Deployment of Quality-Improving Innovations

Author

Listed:
  • Luis Almeida Costa

    (Universidade Nova de Lisboa, Portugal)

  • Ingemar Dierickx

    (INSEAD, Fontainebleau, France)

Abstract

How can a firm deploy an innovation to fully realize its rent potential? We use a game-theoretic model to study the deployment of innovations that enhance the quality of an existing product. Three deployment strategies are compared: captive use, where the firm uses the innovation to enhance the competitive position of its own product; licensing, where the firm shares the innovation with competitors; and independent selling, where the firm incorporates the innovation in a complementary product or service that is sold separately to consumers. We study how the interplay of efficiency and competitive considerations favors certain deployment options over others.

Suggested Citation

  • Luis Almeida Costa & Ingemar Dierickx, 2005. "The Strategic Deployment of Quality-Improving Innovations," The Journal of Business, University of Chicago Press, vol. 78(3), pages 1049-1072, May.
  • Handle: RePEc:ucp:jnlbus:v:78:y:2005:i:3:p:1049-1072
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/429653
    File Function: main text
    Download Restriction: Access to the online full text or PDF requires a subscription.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lim, Wei Shi & Tan, Soo Jiuan, 2010. "Outsourcing suppliers as downstream competitors: Biting the hand that feeds," European Journal of Operational Research, Elsevier, vol. 203(2), pages 360-369, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jnlbus:v:78:y:2005:i:3:p:1049-1072. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division). General contact details of provider: http://www.journals.uchicago.edu/JB/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.