Dynamic Investment Strategies and Leadership in Product Innovation

نویسندگان

  • H. Dawid
  • M. Y. Keoula M. Kopel
  • P. M. Kort
  • Herbert Dawid
  • Michel Y. Keoula
  • Michael Kopel
  • Peter M. Kort
چکیده

We employ a dynamic market model with endogenous creation of submarkets to study the optimal product innovation strategies of incumbent firms. Firms invest in production capacity and R&D knowledge stock, where the latter determines the hazard rate of innovation. We find that under Markov Perfect Equilibrium behavior the firm with a larger market share on the established market is less likely to be the first innovator. Investment in R&D knowledge is negatively affected by the opponent’s production capacity on the established market if the opponent has not innovated yet. However, this effect is reversed after the opponent has successfully introduced the new product. The firm with higher costs of adjusting capacity for the established product has a larger incentive to engage in product innovation and might even achieve higher long run profit than its more efficient competitor.

برای دانلود رایگان متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Capacity Investment and Product Innovation Leadership

We employ a dynamic duopoly game with evolving demand structure to study the interplay between the firms’ product innovation activities and their investments in capacities for an established product. After deriving a Markovperfect equilibrium we conclude that the firm with a larger market share for the established product is less likely to be the first innovator. Innovation activity is negative...

متن کامل

The Impact of Knowledge Management on the Innovation Performance in the Pharmaceutical Industry (Case Study: R & D Department Staff of Salamat Pharmaceutical Investment Holding)

Background and Aim: The present study was conducted to investigate the effect of knowledge management on innovation performance in the pharmaceutical industry, which leads to a sustainable competitive advantage. The purpose of this study was to determine the effect of knowledge management on innovation performance in Salamat pharmaceutical investment holding.    Materials and Methods: This stu...

متن کامل

The Error Of Fixed Strategies In IT Innovation Investment Decisions

Allocating an IT Innovation budget to technologies in different maturity stages (mature vs. fashionable IT innovations) is a demanding task for companies. Due to the dynamic innovation cycles with new emerging technologies, many IT innovation investment decisions follow a bandwagon behavior or fixed investment strategies. Instead of optimizing the IT innovation budget’s allocation to mature or ...

متن کامل

Analysis on Dynamic Decision-Making Model of the Enterprise Technological Innovation Investment under Uncertain Environment

Under the environment of fuzzy factors including the return of market, performance of product, and the demanding level of market, we use the method of dynamic programming and establish the model of investment decision, in technology innovation project of enterprise, based on the dynamic programming. Analysis of the influence caused by the changes of fuzzy uncertainty factors to technological in...

متن کامل

Effective Strategies for Optimal Implementation of Evolution and Innovation Packages in Medical Education

ABSTRACT BACKGROUND AND OBJECTIVE: Evolution and innovation packages in medical science education are the main program of medical education and it is necessary to pay attention to the provision of infrastructure of their implementation. This study was conducted to identify effective strategies for optimal implementation of evolution and innovation packages in medical education. METHODS: The met...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2017