Product and process innovation with knowledge accumulation in monopoly: A dynamic analysis

Genyuan Zhong and Weihang Zhang

Economics Letters, 2018, vol. 163, issue C, 175-178

Abstract: In this paper, we investigate monopolist optimal investment levels using a dynamic model under knowledge accumulation. We show that (i) investment decisions in product and process innovation are independent of each other; (ii) under both the monopolist and the social optimum, there exist the saddle stable steady state equilibria; (iii) Optimal investment levels in product and process innovation positive response to learning rate and knowledge accumulation rate, inversely response to knowledge depreciation rate.

Keywords: Process and product innovation; Dynamic analysis; Knowledge accumulation (search for similar items in EconPapers)
JEL-codes: L1 O3 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:163:y:2018:i:c:p:175-178

DOI: 10.1016/j.econlet.2017.12.016

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