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Innovation and Dominant Design in Mobile Telephone

Heli Koski and Tobias Kretschmer

No 1012, Discussion Papers from The Research Institute of the Finnish Economy

Abstract: We document the evolution of product innovation and features in the mobile telephone handset market. We distinguish between two types of product innovation : vertical and horizontal innovation. Using data from 1990 - 2003, we find that some characteristics have subsequently become an industry standard, while some remained as horizontally differentiating features of mobile handsets. We explain this pattern using the concept of dominant design, and results from the theoretical literature on the incentives for horizontal and vertical differentiation

Keywords: Product innovation; mobile phone handsets; dominant design; min-max principle (search for similar items in EconPapers)
JEL-codes: L15 L96 O32 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2006
New Economics Papers: this item is included in nep-ino, nep-mic and nep-tid
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Journal Article: Innovation and Dominant Design in Mobile Telephony (2007) Downloads
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