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Evolutionary Product Differentiation And Market Creation In Turbulent Economic Environments

Author

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  • Morris Teubal
  • Ehud Zuscovitch

Abstract

The assumption of given consumer tastes and production, loses ground very rapidly in information-intensive economic systems, where the ability to design products and services combinations for increasingly specific needs and skills is a key variable to competition. This article presents a search-oriented conceptual framework and proposes a schematic representation of endogenous product differentiation. The evolution of users' and producers' discriminating capabilities is shown to govern their interaction leading to product definition. Patterns of sub-market creation or standardization provide a central building block to market creation analysis.

Suggested Citation

  • Morris Teubal & Ehud Zuscovitch, 1997. "Evolutionary Product Differentiation And Market Creation In Turbulent Economic Environments," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 4(4), pages 265-286.
    • Handle: RePEc:taf:ecinnt:v:4:y:1997:i:4:p:265-286
    DOI: 10.1080/10438599700000001
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    Citations

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    Cited by:

    1. Lall, Sanjaya & Teubal, Morris, 1998. ""Market-stimulating" technology policies in developing countries: A framework with examples from East Asia," World Development, Elsevier, vol. 26(8), pages 1369-1385, August.
    2. Belleflamme, Paul, 2001. "Oligopolistic competition, IT use for product differentiation and the productivity paradox," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 227-248, January.
    3. von Tunzelmann, Nick & Wang, Qing, 2007. "Capabilities and production theory," Structural Change and Economic Dynamics, Elsevier, vol. 18(2), pages 192-211, June.

    More about this item

    Keywords

    Information-intensive production; search activities; discriminating capabilities; user-producer interaction; evolutionary product differentiation; market creation; J.E.L. Classification: O3;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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