Stein, Jeremy C. <br/><br/>
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. .
<br/><br/> June 1994. 
<br/><br/> 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. 
<br/><br/>
<br/><br/><br/>System requirements: Adobe [Acrobat] Reader required for PDF files. <br/>Mode of access: World Wide Web.