Radical Innovation and R&D Competition

Maria Rosa Battaggion and Daniela Grieco

Rivista italiana degli economisti, 2009, issue 2, 345-360

Abstract: Empirical evidence about innovation is doubtful in showing incumbent firms' and new entrants' attitude toward radical innovations. Moreover, theoretical works exhibit divergent conclusions when investigating the incentives to innovate. Our paper emphasizes the importance of distinguishing between degrees of innovativeness when comparing an incumbent's and an entrant's incentives to invest in innovation. The model captures the peculiarity of a radical innovation along three dimension: risk, impact on the existing market and capability of opening up a new market. The results emphasize the role of substitution and complementarity between markets in determining the incentives to innovate in the radical case. Implications on innovation policy are finally discussed.

Keywords: radical innovation; R&D; competition (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.rivisteweb.it/download/article/10.1427/30394 (application/pdf)
https://www.rivisteweb.it/doi/10.1427/30394 (text/html)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mul:jqat1f:doi:10.1427/30394:y:2009:i:2:p:345-360

Access Statistics for this article

Rivista italiana degli economisti is currently edited by Giuliano Conti

More articles in Rivista italiana degli economisti from Società editrice il Mulino
Bibliographic data for series maintained by ().