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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

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    (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: 1-28

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