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Localized Product Innovation. The Role of Proximity in the Lancastrian Product Space




The introduction of technological innovations is induced by changes in product and factor markets to which firms cannot adjust by means of changes in a given technical space, because of limited information, localized knowledge and irreversibility of tangible and intangible production factors. Firms can counteract the decline in their performance and the increase in actual costs by changing their technologies, with the introduction of process and product innovations Proximity in the Lancastrian product space matters when relevant knowledge is acquired and localized by learning by doing current products, learning by using the techniques in place and learning by interacting with current customers and rivals. The rate of technological change and the mix between product and process innovations are endogenous and localized by the key role of irreversibility and by the competence accumulated by means of learning processes.

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  • Antonelli, Cristiano, 2003. "Localized Product Innovation. The Role of Proximity in the Lancastrian Product Space," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200304, University of Turin.
  • Handle: RePEc:uto:labeco:200304

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    References listed on IDEAS

    1. C. Antonelli, 2007. "Localized Technological Change," Chapters,in: Elgar Companion to Neo-Schumpeterian Economics, chapter 16 Edward Elgar Publishing.
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    6. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    7. Antonelli, Cristiano, 2001. "The Microeconomics of Technological Systems," OUP Catalogue, Oxford University Press, number 9780199245536.
    8. Joseph E. Stiglitz, 2002. "Information and the Change in the Paradigm in Economics," American Economic Review, American Economic Association, vol. 92(3), pages 460-501, June.
    9. Klemperer, Paul D, 1987. "Entry Deterrence in Markets with Consumer Switching Costs," Economic Journal, Royal Economic Society, vol. 97(388a), pages 99-117, Supplemen.
    10. McCain, Roger A, 1974. "Induced Bias in Technical Innovation Including Product Innovation in a Model of Economic Growth," Economic Journal, Royal Economic Society, vol. 84(336), pages 959-966, December.
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    13. Atkinson, Anthony B & Stiglitz, Joseph E, 1969. "A New View of Technological Change," Economic Journal, Royal Economic Society, vol. 79(315), pages 573-578, September.
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    1. D’Ignazio, Alessio & Giovannetti, Emanuele, 2014. "Continental differences in the clusters of integration: Empirical evidence from the digital commodities global supply chain networks," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 486-497.

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