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R&D dynamics in the product life cycle

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Abstract

This paper presents a model of a firm's R&D behavior over an entire product life cycle. Beginning with the search stage, modelled as a patent race, firms raise their R&D expenditures until one firm succeeds with a technological breakthrough in creating a new product, market. The following R&D behavior of the successful entrepreneur, devoted to incremental product and process innovations, varies in a characteristic way over the new product's life cycle. Under reasonable conditions, R&D activities rise in the early stages but decline when the market matures. Overall, supply and demand factors combine to determine the R&D time-path.

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Authors and Affiliations

  1. University of Augsburg, Memminger Str. 14, D-8900, Augsburg, FRG

    M. Stadler

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Stadler, M. R&D dynamics in the product life cycle. J Evol Econ 1, 293–305 (1991). https://doi.org/10.1007/BF01236495

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