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Managing Quality And Network Effects In The High-Tech Market: The Case Of Research And Development Tools In Life Science Industry



    (Warwick Business School, The University of Warwick, Conventry, CV4 7AL, UK)



    (School of Business, UCD Smurfit Graduate Business School, Carysfort Avenue, Blackrock, Co. Dublin, Ireland)

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    We seek to extend current theory on research and development (R&D) tools and create new insights by adopting a multi-disciplinary approach and drawing from literatures on quality and network effects in the high-tech market. More specifically, we use a unified framework on quality and network effects, and examine two forms of quality effects (third party quality reviews and company-advertised quality) and two types of network effects (network externalities effect and social network effect) in driving the popularity and success of R&D tools. By tracking two categories of R&D tools in the life science industry for a decade, our research provides a sharper understanding of R&D tools and therefore can help R&D tool producers to accelerate the market acceptance of their new tools, which should promote faster innovation and ultimately benefit the whole R&D community.

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    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Journal of Innovation Management.

    Volume (Year): 16 (2012)
    Issue (Month): 02 ()
    Pages: 1250009-1-1250009-28

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    Handle: RePEc:wsi:ijimxx:v:16:y:2012:i:02:p:1250009-1-1250009-28
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