Title: Multi-stage Innovations: The Value of Flexibility in a Strategic Setting
Abstract: We consider a quantity-setting duopoly model with both firms having the possibility to produce a homogeneous product. Firm 1 has the option to carry out a product innovation project in two stages and in between the two stages Firm 2 can invest in cost-reducing process innovation. Hence, Firm 1's incentive to complete the innovation of the horizontally and vertically differentiated new product is influenced by Firm 2's process innovation activities.
Publication Year: 2006
Publication Date: 2006-01-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 2
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