Bondarev, Anton A. (2012): Heterogeneous product and process innovations for a multi-product monopolist under finite life-cycles of production technologies.
Download (1812Kb) | Preview
Current paper analyses the influence of the length of production technologies life-cycles on the relative intensity of investments of a multi-product monopolist into different types of innovations. This monopolist is developing new versions of the basic product continuously and simultaneously invests into the production technologies of all these new products. In the paper the finite character of these products' life-cycles is assumed. These finite life-cycles are treated for the purposes of the paper as patents which are granted to the monopolist for the production and upgrading of every new product he/she introduces into the market. It is demonstrated that under the condition of finite-time life-cycles of new products the monopolist prefers to invest into process innovations for already introduced products rather than introducing the new ones in relative measure. It is argued, that this is not the case under infinite life-cycles for all these products where the monopolist invests relatively the same amounts into both types of innovations.
|Item Type:||MPRA Paper|
|Original Title:||Heterogeneous product and process innovations for a multi-product monopolist under finite life-cycles of production technologies.|
|English Title:||Heterogeneous product and process innovations for a multi-product monopolist under finite life-cycles of production technologies.|
|Keywords:||Heterogeneous Innovations; Economic Dynamics; Multiproduct Monopoly; Product Life-cycle; Distributed Control|
|Subjects:||L - Industrial Organization > L0 - General
C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives
|Depositing User:||Anton Bondarev|
|Date Deposited:||23. Apr 2012 10:56|
|Last Modified:||27. Feb 2013 08:55|
Aghion, P. and P. Howitt (1992). A model of growth through creative destruction. Econometrica 60 (2), 323-351.
Bondarev, A. (2010). Product and quality innovations: An optimal control approach. Working Papers 439, Bielefeld University, Institute of Mathematical Economics.
Bondarev, A. (2012). The long run dynamics of heterogeneous product and process innovations for a multi product monopolist. Economics of Innovations and New Technology (forthcoming).
Chang, H. (1995). Patent scope, antitrust policy, and cumulative innovation. The RAND Journal of Economics 26 (3), 671-688.
Cornelli, F. and M. Schankerman (1999). Patent renewals and r&d incentives. The RAND Journal of Economics 30 (2), 197-213.
Dawid, H., A. Greiner, and B. Zou (2010). Optimal foreign investment dynamics in the presence of technological spillovers. Journal of Economic Dynamics and Control 34 (3), 296-313.
de Laat, E. (1996). Patents or prizes: Monopolistic r&d and asymmetric information. International Journal of Industrial Organization (15), 369-390.
Denicolo, V. (1996). Patent races and optimal patent breadth and length. The Journal of Industrial Economics 44 (3), 249-265.
Denicolo, V. (2002). Sequential innovation and the patent-antitrust conflict. Oxford Economic Papers working paper(54), 649-668.
Dockner, E., S. Jorgensen, N. Long, and G. Sorger (2000). Differential Games in Economics and Management Sciences. Cambridge University Press,/Cambridge.
Farrell, J. and C. Shapiro (2004). Intellectual property, competition, and information technology. University of California, Berkeley, Working Paper No. CPC04-45.
Gilbert, R. and C. Shapiro (1990). Optimal patent length and breadth. The RAND Journal of Economics 21 (1), 106-112.
Grossman, G. M. and E. Helpman (1993). Endogenous innovation in the theory of growth. working paper 4527, National Bureau of Economic Research.
Hopenhayn, H. and M. Mitchell (2001). Innovation variety and patent breadth. The RAND Journal of Economics 32 (3), 152-166.
Lambertini, L. (2009). Optimal product proliferation in a monopoly: A dynamic analysis. Review of Economic Analysis 1, 28-46.
Lambertini, L. and A. Mantovani (2010). Process and product innovation: A differential game approach to product life cycle. International Journal of Economic Theory 6 (2), 227-252.
Lambertini, L. and R. Orsini (2001). Network externalities and the overprovision of quality by a monopolist. Southern Economic Journal 67 (2), 969-982.
Lin, P. (2004). Process and product r&d by a multiproduct monopolist. Oxford Economic Papers (56), 735-743.
Menell, P. and S. Scotchmer (2005). Intellectual property. in fourthcoming Handbook on Law & Economics.
Nordhaus, W. D. (1967). The optimal life of a patent. Cowles Foundation Discussion Papers 241, Cowles Foundation for Research in Economics, Yale University.
Scotchmer, S. (1996). Protecting early innovators:should second-generation products be patentable? Journal of Industrial Economics (27), 322-331.
Available Versions of this Item
- Heterogeneous product and process innovations for a multi-product monopolist under finite life-cycles of production technologies. (deposited 23. Apr 2012 10:56) [Currently Displayed]