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Long-Run Dynamics Between Product Life Cycle Length and Innovation Performance in Manufacturing

In: Managing Innovation What Do We Know About Innovation Success Factors?

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  • Markus Plewa

Abstract

Changes in the duration of product life cycles (PLCs) have been identified as a driving factor for increasing the speed of new product development (NPD). However, the facilitating potential of increasing the speed to market of new products regarding their success has been subject to extensive debate. In this paper, we shed light on the long-run dynamics between PLC and key innovation performance indicators. A large secondary data set allows us to investigate long-run within-company differences. We observe significantly shrinking PLC on the one hand and significantly increasing NPD speed on the other. A change in the length of the PLC is positively linked to changes in time to market (Ttmarket) and time to volume. Also, we confirm a positive empirical relationship between shorter Ttmarket and quicker implementation of targeted quality and productivity. However, we cannot confirm a positive relationship between shorter Ttmarket and shorter time to break-even of investments.

Suggested Citation

  • Markus Plewa, 2019. "Long-Run Dynamics Between Product Life Cycle Length and Innovation Performance in Manufacturing," World Scientific Book Chapters, in: Alexander Brem & Joe Tidd & Tugrul Daim (ed.), Managing Innovation What Do We Know About Innovation Success Factors?, chapter 13, pages 333-352, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9781786346520_0013
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    More about this item

    Keywords

    Innovation Management; Technology Management; Innovation Success; Crowd; International Innovation;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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