Technical Memorandum Number 720 Radical Innovation for Multi - Dimensional Technologies by Kathy A . Paulson Gjerde Susan A . Slotnick Matthew J . Sobel
نویسندگان
چکیده
We model a firm’s decisions about product innovation, focusing on the extent to which features should be improved or changed in the succession of models that comprise a life cycle. We show that the structure of revenues and costs can suggest when a firm should pursue radical rather than incremental innovation. We use the criterion of maximizing the expected present value of profits during the life cycle. Computational studies complement the theoretical results and lead to insights about when to bundle innovations across features. The formalization was influenced by extensive interviews with managers in a high technology firm that dominates its industry.
منابع مشابه
Dimensional Technologies by Kathy A . Paulson Gjerde
We model a rm's decisions about product innovation, focusing on the extent to which features should be improved or changed in the succession of models that comprise a life cycle. We show that the structure of revenues and costs can suggest when a rm should pursue radical innovation. We use the criterion of maximizing the expected present value of pro ts during the life cycle. Computational stud...
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