Innovative Diffusion in Stochastic Lotka-Volerra System

Yenming J. Chen
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Yenming J. Chen: National Kaohsiung 1st University of Science and Technology

A chapter in Proceedings of 2013 4th International Asia Conference on Industrial Engineering and Management Innovation (IEMI2013), 2014, pp 635-641 from Springer

Abstract: Abstract This paper investigates the reason why some green innovations are more apt to failure, even that they do possess obvious advantages and strong government support initially. The coopetition diffusion model establishes views of external benefits. The coopetition between manufacturers and remanufacturers, with a market demand fluctuation, is described in this model through a stochastic differential game of a Lotka-Volerra system. We highlight the successfulness factors from literature and characterize product natures and customer segmentation in terms of green innovation. We further postulate that diffusion will not sustain if necessary factors do not interact at the right accordance, that is, product nature, product launch strategy and timing have to be aligned well. Furthermore, we conclude that certain launching conditions and distribution fragmentation have to be met for various categories of green innovations and its competitive alternatives. For decision makers of a green product firm, we offer a concrete suggestion for the product launching strategy given observation on market competition, consumer acceptance and government support. Compared to previous studies that focus on competition analysis, this study considers diffusion of green innovation. We successfully link the product distribution dynamics to green innovations in a NPI process, which is otherwise difficult to be observed in other research.

Keywords: Complementary product; Diffusion threshold; Diffusion velocity; Government subsidy; Multi-market competition; Stochastic Lotka-Volerra system (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-40060-5_61

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DOI: 10.1007/978-3-642-40060-5_61

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