Abstract
This paper explores the economic performance of the parallel path R&D approach to product innovation in the absence of patent protection. This is done within the context of a formal model in which competitive innovation is characterized as a dynamic game. The dynamic programming approach used by Aldrich and Morton [Manage. Sci. 21 (1975) 491] in the single firm case is extended here to a multi-firm market. Various measures (the expected net present value (ENPV) of total surplus and of profits, and the mean time to first innovation) are evaluated under different market structures. The study includes simulation analysis of the model.
| Original language | English |
|---|---|
| Pages (from-to) | 19-28 |
| Number of pages | 10 |
| Journal | Mathematics and Computers in Simulation |
| Volume | 57 |
| Issue number | 1-2 |
| DOIs | |
| State | Published - 1 Aug 2001 |
Keywords
- Dynamic game
- Parallel R&D analysis
- Simulation tests
ASJC Scopus subject areas
- Theoretical Computer Science
- General Computer Science
- Numerical Analysis
- Modeling and Simulation
- Applied Mathematics
