Title: Adoption of Product and Process Innovations in Differentiated Markets: The Impact of Competition
Abstract:The paper examines the effects of the degree of competition on the firms' decision to innovate in differentiated markets. We find that a low (high) degree of product differentiation (competition) weak...The paper examines the effects of the degree of competition on the firms' decision to innovate in differentiated markets. We find that a low (high) degree of product differentiation (competition) weakly supports the introduction of new products. Firms' weakly favour a process innovation if the degree of product differentiation (competition) is high (low). In addition, assumptions on the strategic complementarity of product and process innovations and on the decreasing returns of a product innovation are found to be the critical assumptions in the sense of Milgrom and Roberts (1994).Read More
Publication Year: 2003
Publication Date: 2003-01-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 3
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