TY  - BOOK
AU  - Stein,Jeremy C.
ED  - National Bureau of Economic Research.
TI  - Waves of Creative Destruction: Customer Bases and the Dynamics of       Innovation 
T2  - NBER working paper series
PY  - 1994///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - June 1994; Hardcopy version available to institutional subscribers
N2  - 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
UR  - https://www.nber.org/papers/w4782
UR  - http://dx.doi.org/10.3386/w4782
ER  -