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The long run Dynamics of heterogeneous Product and Process Innovations for a Multi Product Monopolist

  • Bondarev, Anton A.

This paper introduces the dynamical framework which combines product and process innovations. The model contributes to the theoretical literature on innovations in two ways. First, it permits for the simultaneous dynamics of both types of innovations which is rarely considered in the literature. Second, the products being generated by the innovations are heterogeneous in their investment characteristics. This allows for the formation of the dynamic interdependency between both types of innovations. As a result the steady state levels of process innovations for each product are different and influence the dynamics of product innovations in turn.

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File URL: http://mpra.ub.uni-muenchen.de/35195/1/MPRA_paper_35195.pdf
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File URL: http://mpra.ub.uni-muenchen.de/36669/3/MPRA_paper_36669.pdf
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File URL: http://mpra.ub.uni-muenchen.de/45266/10/MPRA_paper_45266.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35195.

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Date of creation: Dec 2010
Date of revision: 26 Nov 2011
Handle: RePEc:pra:mprapa:35195
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  1. Nicholas Crafts, 2010. "Cliometrics and technological change: a survey," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 17(5), pages 1127-1147.
  2. Gilbert, R. & Shapiro, C., 1988. "Optimal Patent Length And Breadth," Papers 28, Princeton, Woodrow Wilson School - Discussion Paper.
  3. Fabbri, Giorgio & Iacopetta, Maurizio, 2007. "Dynamic Programming, Maximum Principle and Vintage Capital," MPRA Paper 5115, University Library of Munich, Germany.
  4. Fabbri, Giorgio & Gozzi, Fausto, 2006. "Vintage Capital in the AK growth model: a Dynamic Programming approach. Extended version," MPRA Paper 7334, University Library of Munich, Germany.
  5. L. Lambertini, 2008. "Optimal Product Proliferation in Monopoly: A Dynamic Analysis," Working Papers 648, Dipartimento Scienze Economiche, Universita' di Bologna.
  6. Chryssochoidis, George M., 2003. "Factors affecting product innovations: A literature review," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 4(1), January.
  7. Jan Boone, 2000. "Competitive Pressure: The Effects on Investments in Product and Process Innovation," RAND Journal of Economics, The RAND Corporation, vol. 31(3), pages 549-569, Autumn.
  8. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  9. Boucekkine, Raouf, et al, 1998. " Creative Destruction, Investment Volatility, and the Average Age of Capital," Journal of Economic Growth, Springer, vol. 3(4), pages 361-84, December.
  10. Susan Athey & Armin Schmutzler, 1995. "Product and Process Flexibility in an Innovative Environment," RAND Journal of Economics, The RAND Corporation, vol. 26(4), pages 557-574, Winter.
  11. repec:pra:mprapa:2863 is not listed on IDEAS
  12. Hopenhayn, Hugo A & Mitchell, Matthew F, 2001. "Innovation Variety and Patent Breadth," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 152-66, Spring.
  13. Luca Lambertini & Raimondello Orsini, 2001. "Network Externalities and the Overprovision of Quality by a Monopolist," Southern Economic Journal, Southern Economic Association, vol. 67(4), pages 969-982, April.
  14. repec:ner:tilbur:urn:nbn:nl:ui:12-84400 is not listed on IDEAS
  15. repec:cup:cbooks:9780521637329 is not listed on IDEAS
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