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A Microeconometric note on product innovation and product innovation advertising

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  • Ulrich Kaiser

Abstract

This paper seeks to explain why more than half of the German service sector firms that introduce a product innovations do not advertise their new or markedly improved product. One part of the explanation is that they do not need to advertise because they are closely related to their customers anyway, and another part of the explanation is that product innovation and product innovation advertising are strategic substitutes.

Suggested Citation

  • Ulrich Kaiser, 2005. "A Microeconometric note on product innovation and product innovation advertising," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(7), pages 573-582.
    • Handle: RePEc:taf:ecinnt:v:14:y:2005:i:7:p:573-582
    DOI: 10.1080/1043859042000269115
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    References listed on IDEAS

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    7. Kamien,Morton I. & Schwartz,Nancy L., 1982. "Market Structure and Innovation," Cambridge Books, Cambridge University Press, number 9780521293853, December.
    8. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
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    Cited by:

    1. Parisa Pourkarimi & Gamal Atallah, 2020. "The Impact of Cooperative R&D and Advertising on Innovation and Welfare," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 18(1), pages 143-167, March.
    2. Winghan Kwong & Edward Norton, 2007. "The Effect of Advertising on Pharmaceutical Innovation," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 31(3), pages 221-236, November.
    3. Su, Zhifang & Wang, Luhan & Liao, Jing & Cui, Xin, 2023. "Peer effects in corporate advertisement expenditure: Evidence from China," Research in International Business and Finance, Elsevier, vol. 64(C).

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