Competing Process and Quality Innovation and the Duration of Product Cycles

2014 Fiscal Year Final Research Report

• Project/Area Number: 24530261
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Applied economics
• Research Institution: Kobe City University of Foreign Studies
• Principal Investigator: YASUNOBU Tomoda 神戸市外国語大学, 外国語学部, 准教授 (30437280)
• Co-Investigator(Kenkyū-buntansha): TANAKA Satoru 神戸市外国語大学, 外国語学部, 教授 (20207096) ; DAVIS Colin 同志社大学, 国際教育インスティテュート, 准教授 (70432557)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: プロダクトライフサイクル / イノベーション

Outline of Final Research Achievements

The main purpose of our research project is to propose a growth model in which product cycles arise endogenously from investment in two types of innovations. Incumbent firms invest in incremental technology improvements with the aim of reducing production costs. Market entrants develop breakthrough product designs in order to capture the market from vintage product lines. The competing objectives of the two types of innovation generate product cycles within an environment of creative destruction. We characterized three stable patterns of product evolution: incremental innovation alone, breakthrough innovation alone, and product cycles with both types of innovation.

Free Research Field

マクロ経済学