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Competition in Innovation and Imitation - A Theoretical and Experimental Study -

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  • Uwe Cantner
  • Werner Gueth
  • Andreas Nicklisch
  • Torsten Weiland

Abstract

For given product specifications by two competing firms the demand levels are determined by a randomly generated ideal composition of aspects. Firms can vary some demand. Although the product space is much too large to be explored systematically, we expect (and test for) rather reasonable innovative success and welfare levels due to own innovative attempts and imitation of a successful other. Parameter variations concern the pioneer advantage and search costs.

Suggested Citation

  • Uwe Cantner & Werner Gueth & Andreas Nicklisch & Torsten Weiland, 2003. "Competition in Innovation and Imitation - A Theoretical and Experimental Study -," Papers on Strategic Interaction 2004-02, Max Planck Institute of Economics, Strategic Interaction Group.
    • Handle: RePEc:esi:discus:2004-02
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    References listed on IDEAS

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    1. Dasgupta, Partha & Stiglitz, Joseph, 1980. "Industrial Structure and the Nature of Innovative Activity," Economic Journal, Royal Economic Society, vol. 90(358), pages 266-293, June.
    2. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
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    Cited by:

    1. Markus Pasche & Sebastian von Engelhardt, 2004. "Volkswirtschaftliche Aspekte der Open-Source-Softwareentwicklung," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 18/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    2. Uwe Cantner & Jens Kruger & Kristina von Rhein, 2011. "Knowledge compensation in the German automobile industry," Applied Economics, Taylor & Francis Journals, vol. 43(22), pages 2941-2951.
    3. U. Cantner & J.J. Krüger, 2007. "Empirical Tools for the Analysis of Technological Heterogeneity and Change: Some Basic Building Blocks of ‘Evolumetrics'," Chapters, in: Horst Hanusch & Andreas Pyka (ed.), Elgar Companion to Neo-Schumpeterian Economics, chapter 30, Edward Elgar Publishing.
    4. R. Helm & M. Steiner & A. Scholl & L. Manthey, 2008. "A comparative empirical study on common methods for measuring preferences," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 9(3), pages 242-265.
    5. Uwe Cantner & Kristina Dreßler & Jens J. Krüger, 2006. "Firm survival in the German automobile industry," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 33(1), pages 49-60, March.
    6. Cantner, Uwe & Graf, Holger, 2006. "The network of innovators in Jena: An application of social network analysis," Research Policy, Elsevier, vol. 35(4), pages 463-480, May.
    7. Uwe Cantner & Andreas Nicklisch & Torsten Weiland, 2005. "Innovation races: An experimental study on strategic research activities," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 17/2005, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    8. Andreas Freytag & Klaus Winkler, 2004. "The Economics of Self-regulation in telecommunications under sunset legislation," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 17/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    9. Jens J. Krüger, 2004. "Capacity Utilization and Technology Shocks in the U.S. Manufacturing Sector," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 10/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    10. Markus Pasche, 2004. "Voluntary Commitment to Environmental Protection: A Bounded Rationality Approach," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 22/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    11. Jens J. Krüger, 2008. "Productivity dynamics and structural change in the US manufacturing sector," Industrial and Corporate Change, Oxford University Press, vol. 17(4), pages 875-902, August.
    12. Werner Jammernegg & Peter Kischka, 2005. "A Decision Rule Based on the Conditional Value at Risk," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 09/2005, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    13. Reinhard Haupt & Karsten Jahn & Marcus Lange & Wolfgang Ziegler, 2004. "Der Patentlebenszyklus: Methodische Lösungsansätze der externen Technologieanalyse," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 24/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    14. Andreas Freytag & Simon Renaud, 2007. "From short-term to long-term orientation—political economy of the policy reform process," Journal of Evolutionary Economics, Springer, vol. 17(4), pages 433-449, August.
    15. Andreas Freytag & Simon Renaud, 2004. "Langfristorientierung in der Arbeitsmarktpolitik," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 23/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    16. Andreas Freytag & Donato Masciandaro, 2005. "Financial Supervision Fragmentation and Central Bank Independence: The Two Sides of the Same Coin?," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 14/2005, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    17. Vijay Vyas, 2005. "Imitation, Incremental Innovation and Climb Down," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 14(2), pages 103-116, September.
    18. Werner Jammernegg & Peter Kischka, 2004. "Performance Measurement for Inventory Models with Risk Preferences," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 26/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    19. Jens J. Krüger, 2004. "Using the Manufacturing Productivity Distribution to Evaluate Growth Theories," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 16/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    20. Axel Braßler & Christoph Grau, 2004. "Modulare Organisationseinheiten," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 25/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.

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    More about this item

    Keywords

    Innovation; Imitation; Patent Tournament; Trial and Error Process;
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