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Modularity and Product Innovation in Digital Markets

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  • M. Bourreau
  • P. Dogan
  • M. Manant

Abstract

Most digital goods have a modular design; that is, they consist of complementary and distinct building blocks, called modules. Modular product design, in contrast to integrated (or integral) design, enables alteration of a specific module that is usually assigned for a specific function without necessarily requiring an entire redesign of the product. This feature facilitates product innovation. The possibility of having common modules embedded in a range of products is likely to affect firms' product innovation strategies and post-innovation competition both in traditional and digital markets. In this paper, we explore such effects with a focus on digital markets.
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  • M. Bourreau & P. Dogan & M. Manant, "undated". "Modularity and Product Innovation in Digital Markets," Working Paper 33649, Harvard University OpenScholar.
  • Handle: RePEc:qsh:wpaper:33649
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    File URL: http://scholar.harvard.edu/pdogan/node/33649
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    References listed on IDEAS

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    1. James E. Prieger, 2002. "Regulation, Innovation, and the Introduction of New Telecommunications Services," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 704-715, November.
    2. Michael H. Riordan, 1992. "Regulation and Preemptive Technology Adoption," RAND Journal of Economics, The RAND Corporation, pages 334-349.
    3. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters,in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
    4. Reinganum, Jennifer F, 1983. "Uncertain Innovation and the Persistence of Monopoly," American Economic Review, American Economic Association, vol. 73(4), pages 741-748, September.
    5. Kim, Jeong-Yoo & Kim, Sang Taek & Kim, Dong-Ju, 2000. "Local loop unbundling and antitrust policy," Information Economics and Policy, Elsevier, vol. 12(4), pages 393-412, December.
    6. Bourreau, Marc & Dogan, Pinar, 2001. "Regulation and innovation in the telecommunications industry," Telecommunications Policy, Elsevier, vol. 25(3), pages 167-184, April.
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    Cited by:

    1. Gauguier, Jean-Jacques, 2009. "L’industrialisation de l’Open Source," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/4388 edited by Toledano, Joëlle, March.
    2. Marc Bogdanowicz & Giuditta de Prato & Daniel Nepelski & Jean-Paul Simon & Wainer Lusoli, 2010. "Born Digital / Grown Digital: Assessing the Future Competitiveness of the EU Video Games Software Industry," JRC Working Papers JRC60711, Joint Research Centre (Seville site).

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