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| Author: | Mantovani, A. |
| Title: | Complementarity between product and process innovation in a monopoly setting |
| Journal: | Economics of innovation and new technology
2006 : APR, VOL. 15:3, p. 219-234 |
| Index terms: | monopoly innovation new products investments models |
| Freeterms: | processes complementarity |
| Language: | eng |
| Abstract: | This article deals with complementarity btw. market-enhancing product innovation (here as: inn./inns.) and cost-reducing process inn. in a monopoly setting. First, considered is the possibility for a firm to alternatively invest only along one of the two directions comparing the incentives of process vs. product inn. Then, the firm is allowed to invest simultaneously in both activities (as: b-acts.), showing that both investment (as: inv.) levels and profit are higher than in the case of individual inv. Thus, product and process inns. are complementary, and the firm always prefers the simultaneous adoption of b-acts. |
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