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

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  • Bondarev, Anton A.

Abstract

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.

Suggested Citation

  • Bondarev, Anton A., 2010. "The long run Dynamics of heterogeneous Product and Process Innovations for a Multi Product Monopolist," MPRA Paper 35195, University Library of Munich, Germany, revised 26 Nov 2011.
    • Handle: RePEc:pra:mprapa:35195
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    References listed on IDEAS

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    1. Ping Lin, 2004. "Process and product R&D by a multiproduct monopolist," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 735-743, October.
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    9. Chryssochoidis, George M., 2003. "Factors affecting product innovations: A literature review," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 4(01), pages 1-16, January.
    10. 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.
    11. repec:pra:mprapa:2863 is not listed on IDEAS
    12. Fabbri, Giorgio & Iacopetta, Maurizio, 2007. "Dynamic Programming, Maximum Principle and Vintage Capital," MPRA Paper 5115, University Library of Munich, Germany.
    13. 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.
    14. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
    15. 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.
    16. Dockner,Engelbert J. & Jorgensen,Steffen & Long,Ngo Van & Sorger,Gerhard, 2000. "Differential Games in Economics and Management Science," Cambridge Books, Cambridge University Press, number 9780521637329, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Bondarev, Anton & Greiner, Alfred, 2018. "Catching-up and falling behind: Effects of learning in an R&D differential game with spillovers," Journal of Economic Dynamics and Control, Elsevier, vol. 91(C), pages 134-156.
    2. Anton Bondarev, 2016. "Intensity of R&D competition and the generation of innovations in heterogeneous setting," Journal of Evolutionary Economics, Springer, vol. 26(3), pages 621-653, July.
    3. Bondarev, Anton & Greiner, Alfred, 2020. "Global warming and technical change: Multiple steady-states and policy options," China Economic Review, Elsevier, vol. 62(C).
    4. Greiner, Alfred & Bondarev, Anton, 2017. "Optimal R&D investment with learning-by-doing: Multiple steady-states and thresholds," Working papers 2017/06, Faculty of Business and Economics - University of Basel.
    5. Bondarev, Anton & Greiner, Alfred, 2019. "Endogenous Growth And Structural Change Through Vertical And Horizontal Innovations," Macroeconomic Dynamics, Cambridge University Press, vol. 23(1), pages 52-79, January.
    6. Bondarev, Anton & Krysiak, Frank C., 2017. "Dynamic heterogeneous R&D with cross-technologies interactions," Working papers 2017/13, Faculty of Business and Economics - University of Basel.
    7. Bondarev, Anton, 2018. "Does stronger intellectual property rights protection foster structural change? Effects of heterogeneity in innovations," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 26-42.
    8. Bondarev, Anton, 2014. "Endogenous specialization of heterogeneous innovative activities of firms under the technological spillovers," Journal of Economic Dynamics and Control, Elsevier, vol. 38(C), pages 235-249.
    9. Anton Bondarev & Alfred Greiner, 2018. "Technology lock-in with horizontal and vertical innovations through limited R&D spending," 4OR, Springer, vol. 16(1), pages 51-65, March.
    10. Bondarev, Anton A., 2012. "Optimal control over a continuous range of homogeneous and heterogeneous innovations with finite life-cycles," MPRA Paper 40068, University Library of Munich, Germany.
    11. Tamasiga, Phemelo & Bondarev, Anton, 2014. "Differential games approach to trade with exhaustible resources," Working papers 2014/14, Faculty of Business and Economics - University of Basel.

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    Keywords

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    JEL classification:

    • L0 - Industrial Organization - - General
    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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