Process and product innovation by a multiproduct monopolist: A dynamic approach

Lambertini, Luca; Mantovani, Andrea

doi:10.1016/j.ijindorg.2008.12.005

Cited by 109 publications

(78 citation statements)

References 26 publications

(24 reference statements)

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“…Green product and process innovation not only reduce negative environmental impact, but they also increase the economic and social performance of a company through waste and cost reduction [16]. Companies implement green process innovation in the manufacturing process to shorten production time and reduce costs [17]. In addition, a good product innovation improves market position, affirms brand names, leapfrogs competition, creates breakthroughs, and attracts new customers [18].…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Types of Green Innovations: Ways of Implementation in a Non-Green Industry

2017

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Attention to environmental sustainability represents an essential issue for the companies that, in order to integrate environment into their strategies, are producing specific innovations that have also positive environmental outcomes. Implementing green innovations represents a great challenge for non-green companies because it often requires the acquisition of new resources and competences that differ significantly from their existing competences. This paper attempts to propose a theoretical framework that classifies green innovations according their impact on company's competences and analyses how green innovations can be implemented. Given the complexity of the issue and the variability of situations, we use a multiple case study analysis of several green innovations developed in a non-green industry, namely the automotive sector. Indeed, this is one that produces the highest environmental impact and, in recent years, it has been subjected to increasing regulatory restrictions. Companies operating in a non-green industry that implement disruptive, radical and architectural green innovations can initiate market and technological partnerships to mitigate against such internal weaknesses, such as the lack of technological capabilities and market knowledge. The collaboration helps firms to access new competences and capabilities useful to change or develop new technology capabilities and market knowledge more easily and with lower costs.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Types of Green Innovations: Ways of Implementation in a Non-Green Industry

2017

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“…The related literature [24,[27][28][29][30] has not considered initial marginal cost levels that exceed the choke price nor has it carried out a global analysis. In all these papers, any of the initial (permissible) technologies will be developed to full materialization; technologies that are only developed under specific regimes (i.e., product market collusion) remain hidden.…”

Section: ]mentioning

confidence: 99%

“…Note that efficiency of production is assumed to decrease at a constant rate, as captured byδ > 0. This depreciation is due to (exogenous) aging of technology and organizational forgetting [28,35]. As Benkard [36, p. 590] observes: "… an aircraft producer's stock of production experience is constantly being eroded by turnover, lay offs and simple losses of proficiency at seldom repeated tasks.…”

Section: The Modelmentioning

confidence: 99%

Research and Development Cooperatives and Market Collusion: A Global Dynamic Approach

Hinloopen

Smrkolj

Wagener

2017

J Optim Theory Appl

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We present a continuous-time generalization of the seminal research and development model of d'Aspremont and Jacquemin (Am Econ Rev 78(5): [1133][1134][1135][1136][1137] 1988) to examine the trade-off between the benefits of allowing firms to cooperate in research and the corresponding increased potential for product market collusion. We show the existence of a solution to the optimal investment problem using a combination of results from viscosity theory and the theory of planar dynamical systems. In particular, we show that there is a critical level of marginal cost at which firms are indifferent between doing nothing and starting to develop the technology. We find that colluding firms develop further a wider range of initial technologies, pursue innovations more quickly, and are less likely to abandon a technology. Product market collusion could thus yield higher total surplus.

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“…The optimal control problem for the monopolist is to find controls q * and k * that maximize the profit functional Π subject to the state equation (2), the initial condition 9 In assuming a positive rate of technology (or know-how) depreciation we follow the related theoretical literature (Besanko et al (2010), Lambertini and Mantovani, 2009). For instance, in Besanko et al (2010), a firm moves down its learning curve if its gains in know-how through learning are less than the inevitable knowhow losses from organizational forgetting, inducing marginal costs to increase.…”

Section: The Modelmentioning

confidence: 99%

“…The Hamilton function, obtained by substituting (21) and appropriate expressions for q from (20) into the Pontryagin function (11), is given by…”

Section: The System With Zero Productionmentioning

confidence: 99%

From mind to market: A global, dynamic analysis of R&D

Hinloopen

Smrkolj

Wagener

2013

Journal of Economic Dynamics and Control

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in February, 2013Abstract Existing models of R&D are not easily reconciled with four observable aspects of R&D: initial technologies ("ideas") need to be developed further, only a minority of initial ideas is successfully brought to the market, production and process innovations take place simultaneously (whereby, initially, there is no production at all), and process innovations are implemented for technologies that are destined to leave the market. We present a detailed bifurcation analysis for a dynamic model of R&D that captures these observations in one, unifying framework. As we provide a global analysis, we do not limit initial technologies to carry marginal costs that are below the choke price. We show that there always exists a critical value of initial marginal cost above which the firm does not initiate any (R&D) activity; the path to the saddle-point steady state is never globally optimal. We also sketch some tentative policy implications of our analysis.

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Process and product innovation by a multiproduct monopolist: A dynamic approach

Cited by 109 publications

References 26 publications

Types of Green Innovations: Ways of Implementation in a Non-Green Industry

Types of Green Innovations: Ways of Implementation in a Non-Green Industry

Research and Development Cooperatives and Market Collusion: A Global Dynamic Approach

From mind to market: A global, dynamic analysis of R&D

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