Waves of Creative Destruction: Customer Bases and the Dynamics of Innovation /
Stein, Jeremy C.
Waves of Creative Destruction: Customer Bases and the Dynamics of Innovation / Jeremy C. Stein. - Cambridge, Mass. National Bureau of Economic Research 1994. - 1 online resource: illustrations (black and white); - NBER working paper series no. w4782 . - Working Paper Series (National Bureau of Economic Research) no. w4782. .
June 1994.
This paper develops a model of repeated innovation with knowledge spillovers. The model's novel feature is that firms compete on two dimensions: 1) product quality or cost, where one firm's innovation ultimately spills over to other firms; and 2) distribution costs, where there are no spillovers across firms and where incumbent firms' existing customer bases give them a competitive advantage over would- be entrants. Customer bases have two important consequences: 1) they can in some circumstances dramatically reduce the long-run average level of innovation; 2) they lead to endogenous bunching, or waves, in innovative activity.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Waves of Creative Destruction: Customer Bases and the Dynamics of Innovation / Jeremy C. Stein. - Cambridge, Mass. National Bureau of Economic Research 1994. - 1 online resource: illustrations (black and white); - NBER working paper series no. w4782 . - Working Paper Series (National Bureau of Economic Research) no. w4782. .
June 1994.
This paper develops a model of repeated innovation with knowledge spillovers. The model's novel feature is that firms compete on two dimensions: 1) product quality or cost, where one firm's innovation ultimately spills over to other firms; and 2) distribution costs, where there are no spillovers across firms and where incumbent firms' existing customer bases give them a competitive advantage over would- be entrants. Customer bases have two important consequences: 1) they can in some circumstances dramatically reduce the long-run average level of innovation; 2) they lead to endogenous bunching, or waves, in innovative activity.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.