Optimal control over a continuous range of homogeneous and heterogeneous innovations with finite life-cycles
The paper presents a fully dynamic framework for simultaneous analysis of variety enhancing and quality improving innovations for the case of a single agent. There is a continuous stream of variety enhancing innovations and every new product from this stream has its own quality dimension which also may be developed. In this framework the limited life-cycles of all these new products are assumed. Then the question of how longer or shorter life-cycles may influence the innovative activity of both types is analyzed. It is demonstrated, that in the case of homogeneous products the longer is the life-cycle the more intense are innovations of both types, while in heterogeneous case the effect is more complicated. At initial stage of industry development longer life-cycles (aka patents) stimulate innovative activity, while in mature stage of development they do not. This gives foundation for limited nature of optimal length of patents solely from the considerations of the type and nature of the industry itself, without usual reference to the competition effects. The model is developed using distributed optimal control technique.
|Date of creation:||12 May 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard Gilbert & Carl Shapiro, 1990.
"Optimal Patent Length and Breadth,"
RAND Journal of Economics,
The RAND Corporation, vol. 21(1), pages 106-112, Spring.
- Herbert Dawid & Alfred Greiner & Benteng Zou, 2008.
"Optimal Foreign Investment Dynamics in the Presence of Technological Spillovers,"
CREA Discussion Paper Series
08-07, Center for Research in Economic Analysis, University of Luxembourg.
- Dawid, Herbert & Greiner, Alfred & Zou, Benteng, 2010. "Optimal foreign investment dynamics in the presence of technological spillovers," Journal of Economic Dynamics and Control, Elsevier, vol. 34(3), pages 296-313, March.
- L. Lambertini & A. Mantovani, 2004.
"Process and Product Innovation: a Differential Game Approach to Product Life Cycle,"
529, Dipartimento Scienze Economiche, Universita' di Bologna.
- Luca Lambertini & Andrea Mantovani, 2010. "Process and product innovation: A differential game approach to product life cycle," International Journal of Economic Theory, The International Society for Economic Theory, vol. 6(2), pages 227-252.
- Luca Lambertini, 2009.
"Optimal Product Proliferation in Monopoly: A Dynamic Analysis,"
Review of Economic Analysis,
Rimini Centre for Economic Analysis, vol. 1(1), pages 80-97, September.
- L. Lambertini, 2008. "Optimal Product Proliferation in Monopoly: A Dynamic Analysis," Working Papers 648, Dipartimento Scienze Economiche, Universita' di Bologna.
- repec:cup:cbooks:9780521637329 is not listed on IDEAS
- Aghion, P. & Howitt, P., 1989.
"A Model Of Growth Through Creative Destruction,"
UWO Department of Economics Working Papers
8904, University of Western Ontario, Department of Economics.
- Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
- Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Anton Bondarev, 2010. "Product and Quality Innovations: An Optimal Control Approach," Working Papers 439, Bielefeld University, Center for Mathematical Economics.
- Farrell, Joseph & Shapiro, Carl, 2004. "Intellectual Property, Competition, and Information Technology," Competition Policy Center, Working Paper Series qt3s03932b, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Denicolo, Vincenzo, 1996. "Patent Races and Optimal Patent Breadth and Length," Journal of Industrial Economics, Wiley Blackwell, vol. 44(3), pages 249-65, September.
- 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.
- Vincenzo Denicolo, 2002. "Sequential innovation and the patent-antitrust conflict," Oxford Economic Papers, Oxford University Press, vol. 54(4), pages 649-668, October.
- Suzanne Scotchmer, 1996. "Protecting Early Innovators: Should Second-Generation Products Be Patentable?," RAND Journal of Economics, The RAND Corporation, vol. 27(2), pages 322-331, Summer.
- Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
- Anton Bondarev, 2012.
"The long-run dynamics of product and process innovations for a multi-product monopolist,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 21(8), pages 775-799, November.
- 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.
- Bondarev, Anton A., 2012.
"Optimal control over a continuous range of homogeneous and heterogeneous innovations with finite life-cycles,"
40068, University Library of Munich, Germany.
- Bondarev, Anton A., 2012. "Heterogeneous product and process innovations for a multi-product monopolist under finite life-cycles of production technologies," MPRA Paper 38243, University Library of Munich, Germany.
- 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.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:40068. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.