Innovation and Lock-in

Uwe Cantner () and Simone Vannuccini

No 2016-018, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: This study focuses on a well-known but yet elusive concept: (technological) lock-in. We summarize what is known about the nature of lock-in and offer a critical view on history-dependent processes based on recent contributions to the literature. We discuss if lock-ins are really inescapable, especially when innovation is concerned. Also, we address the question if lock-in is a well-defined concept at all. To offer a fresh view on lock-in and to tackle the issues just raised, we employ the replicator dynamics model. By making a parallel between monopolization in the replicator dynamics and the occurrence of lock-ins, we show that the convergence of a system to a given outcome can be reversed, under certain conditions. We highlight the need for a more precise demarcation of the conceptual boundaries of lock-in and path dependence, both from the formal and the empirical side, and suggest that further structural features - for example users heterogeneity - may play a relevant role in affecting the outcome of dynamic allocation and competition processes.

Keywords: Lock-in; path dependence; history dependent processes; innovation; competitive diffusion; Polya urn (search for similar items in EconPapers)
JEL-codes: L15 O31 O33 (search for similar items in EconPapers)
Date: 2016-11-03
New Economics Papers: this item is included in nep-ino and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://oweb.b67.uni-jena.de/Papers/jerp2016/wp_2016_018.pdf (application/pdf)

Related works:
Chapter: Innovation and lock-in (2017)
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:jrp:jrpwrp:2016-018

Access Statistics for this paper

More papers in Jena Economics Research Papers from Friedrich-Schiller-University Jena
Bibliographic data for series maintained by Markus Pasche ().