On the diffusion of competing innovations

DOI10.1016/J.MATHSOCSCI.2020.08.001MaRDI QIDQ2021329zbMATH OpenOpenAlexWikidataFDO

Authors Bruno D. Badia, Yair Tauman, Biligbaatar Tumendemberel

Publication date 26 April 2021

Published in Mathematical Social Sciences (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/j.mathsocsci.2020.08.001

zbMATH Keywords

competing innovatorsinnovation diffusionlicensing delaypatent licensingperfect substitute innovations

Mathematics Subject Classification ID

Production theory, theory of the firm (91B38)

Review text

This paper examines how discounting shapes the probability that a product innovator grants an innovation for licensing to a firm interested in this innovation, when innovations are perfect substitute and firms are competitive. The discounting refers, of course, to the potential profit of the innovator from offering its innovation for licensing. The analysis takes place within the context of game theory. It is found out that more competition in the market for the innovation may induce lower innovation diffusion and lower welfare in the downstream market.

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Cites work

• scientific article; zbMATH DE number 1099358 (Why is no real title available?)
• Optimal licensing of cost-reducing innovation
• Optimal licensing under incomplete information: the case of the inside patent holder
• Patent licensing in a Cournot oligopoly: general results

Cited in

(19)

• On the competitive pressure created by the diffusion of innovations
• The diffusion of a durable embodied capital innovation
• When to adopt a service innovation: Nash equilibria in a competitive diffusion framework
• Patent litigation and cross licensing with cumulative innovation
• Adverse effects of patent pooling on product development and commercialization
• Innovation and technology diffusion in competitive supply chains
• Problem of innovation diffusion: qualitative investigation and algorithmic aspect.
• More apples vs. better apples: distribution and innovation-driven growth
• Effects of the sharing economy on sequential innovation products
• Modeling competition between two pharmaceutical drugs using innovation diffusion models
• Licensing radical product innovations to speed up the diffusion
• Runner-up patents: is monopoly inevitable?
• Sequential market entries and competition modelling in multi-innovation diffusions
• INDUCING VARIETY: A THEORY OF INNOVATION CONTESTS
• When less competition induces more product innovation
• Competition and innovation: An experimental investigation
• A model of privately funded public research
• Innovation frequency of durable complementary goods
• On the social desirability of patents for sequential innovations in a vertically differentiated market

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