Vertical Integration Smooths Innovation Diffusion

2017 ◽  
Vol 17 (3) ◽  
Author(s):  
Luigi Filippini ◽  
Cecilia Vergari
Keyword(s):  
Innovation Diffusion ◽  
Vertical Integration ◽  
Technology Diffusion ◽  
Product Innovation ◽  
Vertical Separation ◽  
Patent Holder ◽  
Patented Product

AbstractDoes vertical integration of an input innovator with a downstream firm entail innovation foreclosure? We study the licensing incentives of an independent input producer owning a patented product innovation which allows the downstream firms to improve the quality of their final goods. We consider two-part tariff contracts for both outside and incumbent innovators. We find that the incumbent innovator has always the incentive to license its innovation to the rival firm so that under vertical integration complete technology diffusion takes place. In contrast, the external patent holder may prefer exclusive licensing depending on the innovation size as well as on the set of allowed contracts. As a result vertical integration does not entail innovation foreclosure, rather it facilitates innovation diffusion with respect to vertical separation. As for the profitability, the vertical integration with either downstream firm is always privately profitable and it is welfare improving for large innovations: this implies that not all profitable mergers should be rejected.

Effect of networks on product innovation: empirical evidence from Indonesian SMEs

2013 ◽  
Vol 1 (2) ◽  
pp. 140-158 ◽  
Author(s):  
Nurul Indarti ◽  
Theo Postma
Keyword(s):  
Empirical Evidence ◽  
Product Innovation ◽  
Dynamic Effects ◽  
Depth Of Knowledge ◽  
External Knowledge ◽  
Software Firms ◽  
Using Data

Innovative companies generally establish linkages with other actors and access external knowledge in order to benefit from the dynamic effects of interactive processes. Using data from 198 furniture and software firms in Indonesia, this study shows that the quality of interaction (i.e. multiplexity) as indicated by the depth of knowledge absorbed from various external parties and intensity of interaction (i.e., tie intensity) are better predictors of product innovation than the diversity of interaction.

PENGARUH NILAI PELANGGAN, INOVASI PRODUK DAN KUALITAS LAYANAN TERHADAP LOYALITAS NASABAH BANK MUAMALAT INDONESIA CABANG MADIUN

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Binti Mutafarida
Keyword(s):  
Quality Of Service ◽  
Customer Loyalty ◽  
Random Sampling ◽  
Product Innovation ◽  
Customer Value ◽  
Research Method ◽  
Sampling Method ◽  
Descriptive Research ◽  
Independent Variable

The development of sharia banking in Indonesia very rapidly grow up preceded by Bank Muamalat Indonesia and in 2013 ranked as the bank with the highest loyalty and the best among other sharia banking nationally. Bank Muamalat Indonesia branch of Madiun is one of the first branch in Madiun and currently has many competitors from other sharia banking. Based on this background, in this study take what factors affect the size of customer loyalty Bank Muamalat Indonesia branch of Madiun. Based on the result of research, it is found that the level of loyalty of customer of Bank Muamalat of Madiun branch is mostly influenced by product innovation with value of t test value obtained by t-count 2,493, while second factor is influenced by service quality with result of tcount 2,268. So the least influenced factor by the value of the customer is with value of 2.217. This research is a descriptive research method and associative / relationship, this matter to know the value of independent variable. While population of this research is funding customer of Bank Muamalat Indonesia branch of Madiun with amount of 22.196 customer by taking data using random sampling method as much as 108 customer. Keyword: Customer Value, Product Innovation AND Quality Of Service

scholarly journals Promoting Electric Vehicle Cell Innovation Diffusion Considering Patent Licensing Strategy: A Combination of Evolutionary Game and Optimization Algorithm Approach

2021 ◽  
Vol 12 (3) ◽  
pp. 95
Author(s):  
Weiwei Sun ◽  
Zheng Zhang
Keyword(s):  
Electric Vehicle ◽  
Innovation Diffusion ◽  
Diffusion Model ◽  
Optimization Algorithm ◽  
Evolutionary Game ◽  
Patent Holder ◽  
Patent Licensing ◽  
Object Function ◽  
Patent License ◽  
Fierce Competition

Electric vehicle cell industry is an emerging area with fierce competition on technical innovation, in which the patent holder can choose different innovation diffusion options to maximize the return; however, the strategy is unclear in certain scenarios. We tried to explain the question of how to maximize the patent holder’s return by appropriate patent license strategy to promote EV cell innovation diffusion, when competition and patent licensing relationship exist in the supply chain. A multistage and multichannel diffusion model of EV cell comprising the patent holder, EV cell producer and EV producers is developed; the evolutionary game is analyzed considering the competition among same stage players and patent licensing relationship among different stage players; and an optimization algorithm is introduced to find the maximum weighted object function of the patent holder. We established the multistage and multichannel diffusion model and found a nonlinear complex relationship between patent holder object function and the key factors including patent royalty pricing and innovation advantage coefficient; in addition, an optimization algorithm is developed based on adopters’ decision-making related with competition and patent licensing.

scholarly journals INTEREST OF USING E-COMMERCE CHANNELS BASED ON SOCIAL MEDIA TO IMPROVE THE QUALITY OF REGIONAL SUPERIOR PRODUCT MARKETING ON FEMALE GROUP OF CRAFTSMEN FROM SANITAIR KLASEMAN MALANG CITY

2019 ◽  
Vol 1 (1) ◽  
pp. 16
Author(s):  
Ayu Febriyanti Puspitasari ◽  
Rizka Miladiah Ervianty ◽  
Phima Ruthia Dwikesumasari ◽  
Ida Setya Dwijayanti
Keyword(s):  
Social Media ◽  
Product Innovation ◽  
Marketing Channels ◽  
Transfer Payment ◽  
Female Group ◽  
Bank Transfer ◽  
Women Groups ◽  
Use Of Social Media ◽  
The City

Background: Industrial centers (UKM) in Malang are scattered throughout the city. According to data from the Malang Cooperative and UMKM Office, only 30% have gone online from the 70,000 UMKM currently available. This is an opportunity for young people to be able to help UMKM to go online. The main obstacles experienced by UMKM are financing problems, technology and product innovation, market research and inefficiencies. Purpose: To solve the problems of MSMEs in Malang City, especially in the field of technology and product innovation for women groups, UKM Craftsmen Sanitair Klaseman Malang. Method: Training on making e-commerce based marketing channels and social media which includes training on making e-commerce channels through social media and the internet. Results: The UKM of sanitation products in Malang were mostly dominated by 50% flower pots and 25% carvings. The use of social media for UKM partners had an impact on increasing orders from consumers through social media. The types of social media used was Whatsapp (100%), Instagram (55%), and Facebook (87.5%). Communication of sellers and buyers was effective and efficient through media chat messenger. Means of direct contact between sellers and buyers reached 87.5% through social media. Conclusion: Partners got increased orders from consumers after using social media. They could also grow their business bigger because they could have transaction directly with bank transfer payment method.

scholarly journals Democratic Representatives As Epistemic Intermediaries

2020 ◽  
pp. 154-179
Author(s):  
Michael Fuerstein
Keyword(s):  
Vertical Integration ◽  
Point Of View ◽  
Horizontal Integration ◽  
Democratic Representation ◽  
The Right

This chapter develops a model of democratic representation from the standpoint of epistemic theories of democracy. Such theories justify democracy in terms of its tendency to yield decisions that “track the truth” by integrating asymmetrically dispersed knowledge. From an epistemic point of view, I suggest, democratic representatives are best modeled as epistemic intermediaries who facilitate the vertical integration of knowledge between policy experts and non-experts, and the horizontal integration of knowledge among diverse non-experts. The primary analytical payoff of this model is that it provides a clear rationale for variation in the norms and institutionalization of representative behavior. Sometimes a delegate-like approach is the right one, and sometimes a trustee-like approach is better. The key determinant is the effect of these models on the epistemic quality of outcomes under different circumstances. Toward the end of the chapter, the model is applied to the present revival of populism and considers its implications in that context.

scholarly journals Zugangsentgelte zur Infrastruktur der Deutsche Bahn AG: Fluch oder Segen durch vertikale Separierung?

2011 ◽  
Vol 60 (3) ◽  
Author(s):  
Marc Bataille ◽  
Michael Coenen
Keyword(s):  
Economic Policy ◽  
Vertical Integration ◽  
Price Setting ◽  
Vertical Separation ◽  
Railway Transport ◽  
Network Operator ◽  
Policy Proposal ◽  
The Public ◽  
Effective Competition ◽  
Deutsche Bahn

AbstractIt has been a policy proposal since long to vertically separate transport and infrastructure in Germany’s railway sector. The proposal received new momentum, when selling the transport subsidiaries of Deutsche Bahn AG to the public was discussed in 2008 / 2009. While vertical separation is general ly understood to prevent foreclosure and discrimination by the incumbent network- operator, advocates of vertical integration claim separation to have adverse effects on access prices to the infrastructure. We examine the price setting incentives of an integrated and a separated network-operator and compare our results to rough empirical findings on the profitability of the Deutsche Bahn AG infrastructure branches. Theoretical analysis highlights that after separation exceptional mark-ups on access prices to the railwayinfrastructure are feasible only in segments of railway-transport with insufficient competition. We therefore conclude that an economic policy for the railway sector directed on efficient supply and promoting effective competition should unbind itself from alleged price synergies and should press ahead with vertical separation instead.

scholarly journals Factor Effecting of Durian Innovation Product of SME Industry: Study in South of Thailand

2020 ◽  
Vol 11 (6) ◽  
pp. 38
Author(s):  
Thammarak Srimarut ◽  
Witthaya Mekhum
Keyword(s):  
Product Innovation ◽  
The South ◽  
Cross Sectional ◽  
Customer Base ◽  
Competitive Edge ◽  
Industry Study ◽  
Innovation Product ◽  
Quantitative Results ◽  
E Mail

Innovation is a process of creating new things or simply a new idea. Innovation helps the organization to find a competitive edge for survival. Innovation improves the quality of existing products like durian products in Thailand. The purpose of the current study is to investigate the link between factors that affect the durian product innovation in the small and medium industries working in the south of Thailand. Respondents of this study are employees working in the SME industry of the south of Thailand. Data is collected through a questionnaire via e-mail. Data is cross-sectional and the study is quantitative. Results generated from PLS revealed that factors that affect the durian product innovation are customer base, department of research and development and level of competition has a positive significant impact on durian product innovation. Technological innovativeness also has a positive significant impact on durian product innovation and also mediates the relationship between the level of competition and durian product innovation in the SME industry of the south of Thailand. Policymakers should focus on these factors for increasing the innovation of durian products.

scholarly journals Heterogeneity of demand and product innovation

2017 ◽  
Vol 47 (1) ◽  
pp. 5-37 ◽  
Author(s):  
Thiago Caliari ◽  
Marco Valente ◽  
Ricardo Machado Ruiz
Keyword(s):  
Product Innovation ◽  
Imperfect Information ◽  
Evolutionary Model ◽  
Quality Of Information ◽  
Choice Procedures ◽  
Differentiated Goods ◽  
The Relationship ◽  
Role Of Information

Abstract This paper discusses the relationship between heterogeneity of demand regarding choice procedures and product innovation. We propose an evolutionary model showing how consumers with imperfect information chose and select differentiated goods. The model shows the role of information and choice procedures and its relation with the innovative process. The price plays an important role, but the quality of information, error tolerance and criteria for preference ordering are important determinants of the performance of firms in an industry with product innovation.

scholarly journals Input Production Joint Venture

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Gianpaolo Rossini ◽  
Cecilia Vergari
Keyword(s):  
Vertical Integration ◽  
Joint Ventures ◽  
Joint Venture ◽  
Organizational Setting ◽  
Vertical Separation ◽  
Oligopoly Model ◽  
Rule Of Reason ◽  
The Social ◽  
Differentiated Goods ◽  
Partial Collusion

In many industries, it is quite common to observe firms delegating the production of essential inputs to independent ventures jointly established with competing rivals. The diffusion of this arrangement and the favourable stance of competition authorities call for the assessment of the social and private desirability of Input Production Joint Ventures (IPJV), which represent a form of input production cooperation, scantly investigated so far. IPJV can be seen as an intermediate organizational setting lying between the two extremes of vertical integration and vertical separation, with a major difference, due to partial collusion. Our investigation is based on an oligopoly model with horizontally differentiated goods. We characterize the conditions under which IPJV is privately optimal finding that firms' incentives may be welfare detrimental. We also provide a rationale for the empirical relevance of IPJV both in terms of its ability to survive and in terms of disengagement incentives which account for the large number of divorces among members of joint ventures. The stance of the paper as to IPJV is more cautious with respect to the received wisdom of competition authorities and in favour of the wide application of the rule of reason.

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