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| Tekijä: | Yin, X. Zuscovitch, E. |
| Otsikko: | Is firm size conductive to R&D choice? A strategic analysis of product and process innovations |
| Lehti: | Journal of Economic Behavior and Organization
1998 : VOL. 35:2, p. 243-262 |
| Asiasana: | ECONOMIC BEHAVIOUR INNOVATION R&D |
| Kieli: | eng |
| Tiivistelmä: | Using a duopoly model of multiproduct firm, the authors show that different innovation incentives cause the larger firm to invest more in process (cost-reducing) innovations and the small one to allocate more resources to search for new products. Because of this heterogeneity of R&D behavior, the large firm remains dominant for the original product in the post-innovation market, but the small firm is more likely to be a leader in the new product market. These theoretical results are consistent with recent empirical findings. |
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