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Size and sophistication: the two faces of demand

Author

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  • Marco Guerzoni

    (DFG Doctoral Research Programm, Friedrich Schiller University, Jena, Germany.)

Abstract

Innovation is widely acknowledged as one of the main forces driving economic growth. However, despite our significant knowledge of the technological determinants of innovation processes, an adequate understanding of demand side factors is still lacking. This paper aims to survey the literature on the influence of demand upon innovation. Although theories and empirical studies on this issue can be found at various points in economics, management theory, and marketing, in each context, the concept of demand has been understood in different ways and both different methodologies and units of analysis have been employed. This Babel of languages makes it difficult to find a common thread among the different contributions and boosts the perception of a certain disregard of the demand side. This paper reviews the most important literature on the topic with two aims: one is to give an overall picture on how innovation studies have handled the concept of demand; the other is to suggest a framework that includes the main insights from previous contributions. More than an attempt to come out with a general theory on demand, it constitutes a suggestion of a common language.

Suggested Citation

  • Marco Guerzoni, 2007. "Size and sophistication: the two faces of demand," KITeS Working Papers 197, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jan 2007.
    • Handle: RePEc:cri:cespri:wp197
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    File URL: ftp://ftp.unibocconi.it/pub/RePEc/cri/papers/WP197Guerzoni.pdf
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    Citations

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    Cited by:

    1. Marco Guerzoni, 2010. "The impact of market size and users' sophistication on innovation: the patterns of demand," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(1), pages 113-126.
    2. Simon Wiederhold, 2009. "Government Spending Composition in a Simple Model of Schumpeterian Growth," Jena Economics Research Papers 2009-101, Friedrich-Schiller-University Jena.

    More about this item

    Keywords

    Innovation; Demand; Variety.;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • N71 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: Pre-1913
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-

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