The Microeconomics of Product Innovation

2018 ◽  
Author(s):  
Paul Stoneman ◽  
Eleonora Bartoloni ◽  
Maurizio Baussola
Keyword(s):  
Product Innovation ◽  
New Products ◽  
Goods And Services ◽  
Product Innovations ◽  
Microeconomic Analysis ◽  
Prime Objective ◽  
Price Measurement ◽  
The Impact

The prime objective of this book is the use microeconomic analysis to guide and provide insight into the generation and adoption of new products. Taking an approach that uses minimal formal mathematics, the volume initially addresses questions of definitions, sources, and extent of product innovation, differentiating between goods and services; hard and soft innovations; horizontal and vertical innovations; original, new to market, and new to firm innovations. The sources of product innovations (e.g. R&D, design, and creativity) are explored empirically, and the extent of such innovations is then pursued using survey and other data. Three chapters are devoted to the theoretical analysis of the demand for and supply of new products and to the determination of firms’ decisions to undertake product innovation. Later chapters encompass empirical evidence on the determination of the extent of product innovation, the diffusion of such innovation, the impact of product innovation on firm performance, price measurement, and welfare, while the final chapter addresses policy issues.

Introduction

2018 ◽  
Author(s):  
Paul Stoneman ◽  
Eleonora Bartoloni ◽  
Maurizio Baussola
Keyword(s):  
Product Innovation ◽  
New Products ◽  
Postgraduate Students ◽  
Product Innovations ◽  
Microeconomic Analysis ◽  
Private And Public ◽  
Definition Of ◽  
Price Measurement ◽  
The Impact

This chapter introduces the book and discusses its main objective—the microeconomic analysis of product innovation—and its potential readership—third-year undergraduate and postgraduate students, researchers, private and public sector policy professionals—both in economics and in management and business. The chapter argues that this book will fill an important gap in the literature. It also provides an overview of subsequent chapters, summarizes their content, and describes the way they interact. In particular, it indicates that the material provided encompasses the definition of product innovation, the sources of new products, the measurement and extent of product innovation, analytical material on the demand for new products, their supply, and the incentives to product innovation, empirical material on the determination of the extent of product innovation, the diffusion or spread of product innovations, the impact of product innovation on firm performance, price measurement, and welfare and policy issues relating to product innovation.

Product Innovation and Price Measurement

2018 ◽  
Author(s):  
Paul Stoneman ◽  
Eleonora Bartoloni ◽  
Maurizio Baussola
Keyword(s):  
Product Innovation ◽  
Common Knowledge ◽  
Consumer Price Index ◽  
The United States ◽  
Electronic Products ◽  
Quality Adjustment ◽  
Price Indexes ◽  
Price Measurement ◽  
The Impact ◽  
Methodological Guidelines

This chapter addresses how innovation may affect price measurement—a key issue for the accuracy of measures of principal economic indicators and a long-discussed one. Two main changes related to product innovation are important in this context: new goods (which are often cheaper) are driving old goods out of the market; and new products often offer improved quality. The literature suggests that a failure to properly account for these has added 0.8 percentage points per year to the measured Consumer Price Index in the United States. Quality adjustment approaches in all OECD countries have converged towards general methodological guidelines that represent a common knowledge base. The hedonic methodology is applied in a significant number of countries and for specific categories of goods, in particular electronic products. The use of this approach is exemplified and the impact on price indexes evaluated.

Gamified Information Presentation and Consumer Adoption of Product Innovations

2017 ◽  
Vol 81 (2) ◽  
pp. 8-24 ◽  
Author(s):  
Jessica Müller-Stewens ◽  
Tobias Schlager ◽  
Gerald Häubl ◽  
Andreas Herrmann
Keyword(s):  
Product Innovation ◽  
Field Experiments ◽  
Product Information ◽  
New Products ◽  
Innovation Adoption ◽  
Psychological Processes ◽  
Information Presentation ◽  
Consumer Adoption ◽  
Product Innovations ◽  
Practical Implications

This research examines the effect of gamified information presentation—conveying information about a product innovation in the form of a game—on consumer adoption of that innovation. The key hypothesis is that gamified information presentation promotes consumer innovation adoption and that it does so through two parallel psychological processes—by increasing consumer playfulness, which stimulates curiosity about the innovation, and by enhancing the perceived vividness of information presentation, which increases the perceived advantage of the innovation relative to (less innovative) competing products. Evidence from seven studies, including two field experiments, supports this theorizing. The results also show that for gamified information presentation to increase innovation adoption, it is essential that the information is integrated into the game. These findings advance the understanding of the psychological forces that govern how consumers respond to receiving product information in the form of games, and they have important practical implications for how firms might use gamified information presentation to promote sales of new products.

Innovation and the performance of informal enterprises in developing countries: a gender perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elvis Korku Avenyo ◽  
Erika Kraemer-Mbula
Keyword(s):  
Product Innovation ◽  
Business Performance ◽  
Design Methodology ◽  
Data Set ◽  
Content Type ◽  
Factors Affecting ◽  
Product Innovations ◽  
Innovative Products ◽  
The Impact ◽  
Research And Policy

Purpose Examining the impact of gender on various aspects of business performance has gained research and policy traction, although the empirical evidence remains inconclusive. This paper aims to focus on one type of business, namely, informal enterprises and one dimension of business performance, namely, product innovation, to better understand how product innovations affect employment in both female- and male-owned informal enterprises. Design/methodology/approach This paper relies on a unique data set of 513 informal enterprises located in two urban centres in Ghana (Accra and Tema), covering the period between 2013 and 2015 and the Dose-Response Model to examine the effect of product innovations on employment in informal enterprises in urban Ghana. Findings The findings suggest that product innovation has considerable beneficial impacts on the creation of employment in informal enterprises. The results do not show systematic differences in the factors affecting product innovation in female- and male-owned enterprises. However, they suggest that although female-owned enterprises are less likely to introduce product innovations, they do sell more innovative products. Originality/value These findings support the view that innovation is “gendered”, and therefore, requires a “gendered” policy lens.

Product Innovation and Firm Performance

2018 ◽  
Author(s):  
Paul Stoneman ◽  
Eleonora Bartoloni ◽  
Maurizio Baussola
Keyword(s):  
Firm Performance ◽  
Product Innovation ◽  
New Products ◽  
Market Value ◽  
Short Term ◽  
Foreign Markets ◽  
Long Run ◽  
Firm Profitability ◽  
The Impact

This chapter explores the impact of product innovation on firm performance, encompassing both economic and managerial literatures. It is found that product innovation has positive and significant short-term and long-run effects on firm profitability, which, however, vary across industries. The role of complementarities in improving firms’ performance is also stressed. The analysis of the impact of R&D and patents (to which product innovation is closely related) on firm market value indicates an impact from 2.5 per cent to 8 per cent. The impact of product innovation on productivity is indicated by the estimate that the responsiveness of a firm’s productivity to its share of innovative sales ranges from 0.04 to 0.29. How much and with what success firms compete in foreign markets is also found to be positively related to product innovation. Positive and significant impacts on the companies’ market value from information concerning its new products are also found.

scholarly journals The perceived impact of COVID-19 pandemic on healthcare cost in Bangladesh

2021 ◽  
Vol 6 (2) ◽  
pp. 172-185
Author(s):  
Hasibul Islam ◽  
Fatema Johora ◽  
Asma Abbasy ◽  
Masud Rana ◽  
Niyungeko Antoine
Keyword(s):  
Regression Analysis ◽  
Future Research ◽  
Protective Equipment ◽  
Healthcare Facilities ◽  
Independent Variables ◽  
Goods And Services ◽  
R Programming ◽  
Healthcare Expenses ◽  
The Impact

The study showed the effect of the COVID-19 pandemic on healthcare expenses including the price of medicines, protective equipment, medical devices, healthcare facilities, and food. A self-administered questionnaire was used as the data collection tool and 400 people from different Bangladesh divisions (Dhaka, Chittagong, Barisal, Khulna, Mymensingh, Rajshahi, and Sylhet) participated in this study. Multiple regression analysis was used to estimate the impact of independent variables on dependent variables. R programming environment was used to perform the statistical analysis. Cronbach’s alpha was used for determination of reliability and found acceptable internal consistency. The price of protective equipment (POPE), the price of a healthcare facilities (POHCF), the consequences of rising prices (CRP), and COVID-19 were independent variables. COVID-19 (CRP) was a dependent variable that measured COVID-19’s impact (IC). The results of the regression analysis indicated a positive and significant impact of POPE, POHCF, and CRP on IC. However, the variance explained was still low (54.4%). Bangladesh should control the prices of all goods and services because of their influence on the impact of COVID-19. Future research should be conducted to discover other variables that affect the impact of COVID-19.

scholarly journals Competence measurement of production enterprises in product innovations for technological and marketing strategies

2021 ◽  
Vol 43 ◽  
pp. 114-134
Author(s):  
Ireneusz P. Rutkowski ◽  
◽  
◽  
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Product Innovation ◽  
Information Needs ◽  
New Products ◽  
New Product ◽  
Industrial Enterprises ◽  
Industrial Companies ◽  
Product Innovations ◽  
Value Contribution

Aim/purpose – This paper attempts to arrange and present the methods of measuring the competences of production enterprises in the field of product innovations.Design/methodology/approach– The method used in this paper is a literature review, in the area of new product development management. The author assumes that the re-view and conceptual nature of this research is dominant.Findings– The obtained results indicate the importance of measurement in product innovation competencies and provide various metrics in this field. The author proposes new indicators to measure competencies in this area, i.e., the intensity of competition on new products market. Research implications/limitations– The results provide a basis for improving efforts of production enterprises in the field of product innovations. The limitations of the study include a complex character of considered theoretical constructs. Sets of measures must be adapted to the information needs of a specific enterprise.Originality/value/contribution– The values of these indicators reflect the directions of industrial enterprises’ conduct in the process of developing new products and technolo-gies. Moreover, these indicators show the strength of linking technology with the effec-tiveness of new product development, and consequently with the enterprise marketing, economic and financial efficiency. The contribution of research to the development of management sciences primarily includes the formulation of a set of indicators whose level determines product innovation competencies in industrial companies. Keywords: competence measurement, product innovation, production enterprise, new product, technical and marketing strategy.JEL Classification: O31, O32, M21

The Influence of Supply Chain Collaboration on Process, Relational and Product Innovations

2010 ◽  
pp. 186-203 ◽  
Author(s):  
Luc Cassivi ◽  
Pierre Hadaya ◽  
Elisabeth Lefebvre ◽  
Louis A. Lefebvre
Keyword(s):  
Supply Chain ◽  
Product Innovation ◽  
Process Innovation ◽  
Supply Chain Collaboration ◽  
Strategic Actions ◽  
Product Innovations ◽  
Collaboration Tools ◽  
The Impact

This chapter focuses on the impact of strategic and tactical collaborative actions as well as e-collaboration tools efficiency on process and relational innovations which in turn should influence product innovations. The results of this study show that tactical collaborative actions are more geared to lead firms to innovate rather than strategic actions. Findings also suggest that relational innovation has an effect on product innovation for the upstream perspective, whilst process innovation influences product innovation for the downstream perspective.

The Demand for a New Product

2018 ◽  
Author(s):  
Paul Stoneman ◽  
Eleonora Bartoloni ◽  
Maurizio Baussola
Keyword(s):  
Product Innovation ◽  
New Technologies ◽  
New Products ◽  
New Product ◽  
Learning Differences ◽  
Change Over Time ◽  
Price Expectations ◽  
Over Time

This is the first of three chapters that review the factors that drive the demand for, supply of, and the incentives to introduce new products. It explores the determination of the demand for newly launched products, with emphasis upon intertemporal development. Parallels are drawn with the literature on the diffusion of new technologies and it is emphasized how learning, differences between buyers, stock effects, order, and other effects impact upon the demand. The issue of new suppliers offering further products on the market is explored with a distinction between new to market and new to firm products and between horizontal and vertical innovations. The demand for a product innovation may change over time as products, knowledge, and the number of suppliers changes. One might expect that prices (and price expectations) play a major role in the determination of demand, but many other factors also come into play.

Bank Customers′ Perceptions, Innovations and New Technology

1989 ◽  
Vol 7 (2) ◽  
pp. 22-27 ◽  
Author(s):  
Luiz Moutinho ◽  
Arthur Meidan
Keyword(s):  
Smart Card ◽  
Banking Industry ◽  
New Technology ◽  
New Products ◽  
Electronic Banking ◽  
Product Innovations ◽  
The Impact

New technology has, in the last few years, swept the traditional banking industry in an unprecedented way. “Electronic dreams” of the bankers, once considered impossible, have one by one been realised, and electronic banking has become a major realm of product innovations. New, “cheap” technology has surmounted many technical difficulties concomitant with new products such as ATMS, EFTPoS, home banking and the Smart card, which have changed both customers′ perceptions and marketing practices in the banking industry. The perceptual effects and the impact of new technology and product innovations on bank customers are examined and the strategic implications of these developments are discussed.

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