IDEAS home Printed from https://ideas.repec.org/p/rif/dpaper/1174.html
   My bibliography  Save this paper

New Product Development and Firm Value in Mobile Handset Production

Author

Listed:
  • Koski, Heli
  • Kretschmer, Tobias

Abstract

We study the effect of new product introduction on firm value. Using a unique sample on mobile phone handset introduction by 16 major handset manufacturers over 10 years, we distinguish between imitative product introduction and truly innovative product introduction. We find that while most product introduction is imitative, both types of innovation increase firm value. However, truly innovative innovation is found to increase firm value by more than imitative introductions.

Suggested Citation

  • Koski, Heli & Kretschmer, Tobias, 2009. "New Product Development and Firm Value in Mobile Handset Production," Discussion Papers 1174, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:dpaper:1174
    as

    Download full text from publisher

    File URL: http://www.etla.fi/wp-content/uploads/2012/09/dp1174.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    2. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, May.
    3. Hall, Bronwyn H., 1999. "Innovation and Market Value," Department of Economics, Working Paper Series qt9f31v1rw, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    4. Heli Koski & Tobias Kretschmer, 2007. "Innovation and Dominant Design in Mobile Telephony," Industry and Innovation, Taylor & Francis Journals, vol. 14(3), pages 305-324.
    5. Paul A. David & Gavin Wright, 2005. "General Purpose Technologies and Productivity Surges: Historical Reflections on the Future of the ICT Revolution," Economic History 0502002, University Library of Munich, Germany.
    6. Hall, B.H., 1999. "Innovation and Market Value," Economics Papers 1999-w3, Economics Group, Nuffield College, University of Oxford.
    7. Hee‐Jae Cho & Vladimir Pucik, 2005. "Relationship between innovativeness, quality, growth, profitability, and market value," Strategic Management Journal, Wiley Blackwell, vol. 26(6), pages 555-575, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joan Crespo & Raphaël Suire & Jérôme Vicente, 2016. "Network structural properties for cluster long-run dynamics: evidence from collaborative R&D networks in the European mobile phone industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(2), pages 261-282.
    2. Ronald Klingebiel & John Joseph & Valerie Machoba, 2022. "Sequencing innovation rollout: Learning opportunity versus entry speed," Strategic Management Journal, Wiley Blackwell, vol. 43(9), pages 1763-1792, September.
    3. Ronald Klingebiel & John Joseph, 2016. "Entry timing and innovation strategy in feature phones," Strategic Management Journal, Wiley Blackwell, vol. 37(6), pages 1002-1020, June.
    4. Bouwman, Harry & Carlsson, Christer & Carlsson, Joanna & Nikou, Shahrokh & Sell, Anna & Walden, Pirkko, 2014. "How Nokia failed to nail the Smartphone market," 25th European Regional ITS Conference, Brussels 2014 101414, International Telecommunications Society (ITS).
    5. Jorge Alberto Rivera Godoy, 2012. "La incidencia de la innovación sobre la creación de valor: propuesta de un modelo desde la perspectiva financiera," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada, December.
    6. Senyuta, Olena & Žigić, Krešimir, 2016. "Managing spillovers: An endogenous sunk cost approach," Information Economics and Policy, Elsevier, vol. 35(C), pages 45-64.
    7. Musaab Mousa & Saeed Nosratabadi & Judit Sagi & Amir Mosavi, 2021. "The Effect of Marketing Investment on Firm Value and Systematic Risk," Papers 2104.14301, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Panayotis Dessyllas & Alan Hughes, 2005. "R&D and Patenting Activity and the Propensity to Acquire in High Technology Industries," Industrial Organization 0507008, University Library of Munich, Germany.
    2. Ren, Siyu & Hao, Yu & Xu, Lu & Wu, Haitao & Ba, Ning, 2021. "Digitalization and energy: How does internet development affect China's energy consumption?," Energy Economics, Elsevier, vol. 98(C).
    3. Vahagn Jerbashian & Anna Kochanova, 2016. "The impact of doing business regulations on investments in ICT," Empirical Economics, Springer, vol. 50(3), pages 991-1008, May.
    4. Stefano Bianchini & Giulio Bottazzi & Federico Tamagni, 2017. "What does (not) characterize persistent corporate high-growth?," Small Business Economics, Springer, vol. 48(3), pages 633-656, March.
    5. Emanuele Giovannetti & Claudio Piga, 2023. "The multifaceted nature of cooperation for innovation, ICT and innovative outcomes: evidence from UK Microdata," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 639-666, September.
    6. Abdulqadir, Idris A. & Asongu, Simplice A., 2022. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 44-61.
    7. Jerbashian Vahagn, 2016. "Knowledge licensing in a model of R&D-driven endogenous growth," The B.E. Journal of Macroeconomics, De Gruyter, vol. 16(2), pages 555-579, June.
    8. Briglauer, Wolfgang & Cambini, Carlo & Melani, Sauro, 2016. "How to Fill the Digital Gap? The (Limited) Role of Regulation," VfS Annual Conference 2016 (Augsburg): Demographic Change 145480, Verein für Socialpolitik / German Economic Association.
    9. Jerbashian Vahagn & Kochanova Anna, 2018. "Tele-Communications 2.0: The Age of the Internet," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(3), pages 1-8, July.
    10. Bourreau, Marc & Cambini, Carlo & Doğan, Pınar, 2012. "Access pricing, competition, and incentives to migrate from “old” to “new” technology," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 713-723.
    11. Gagliardi, Luisa, 2019. "The impact of foreign technological innovation on domestic employment via the industry mix," Research Policy, Elsevier, vol. 48(6), pages 1523-1533.
    12. Shveta Kapoor & H.S. Sandhu, 2010. "Does it Pay to be Socially Responsible? An Empirical Examination of Impact of Corporate Social Responsibility on Financial Performance," Global Business Review, International Management Institute, vol. 11(2), pages 185-208, June.
    13. Stockinger, Bastian, 2017. "The effect of broadband internet on establishments' employment growth: evidence from Germany," IAB-Discussion Paper 201719, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Nagaoka, Sadao, 2006. "R&D and market value of Japanese firms in the 1990s," Journal of the Japanese and International Economies, Elsevier, vol. 20(2), pages 155-176, June.
    15. Edquist, Harald, 2022. "The economic impact of mobile broadband speed," Telecommunications Policy, Elsevier, vol. 46(5).
    16. Ajoy Ketan Sarangi & Rudra Prakash Pradhan, 2020. "ICT infrastructure and economic growth: a critical assessment and some policy implications," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(4), pages 363-383, December.
    17. Narula R. & Prasad T., 2013. "The growth of outward FDI and the competitiveness : the case of India," MERIT Working Papers 2013-042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    18. Jung, Juan, 2020. "Institutions and Telecommunications Investment," Information Economics and Policy, Elsevier, vol. 50(C).
    19. Jerbashian, Vahagn, 2015. "The telecommunications industry and economic growth: How the market structure matters," Economic Modelling, Elsevier, vol. 51(C), pages 515-523.
    20. Robert M. Hunt, 1999. "Patent reform: a mixed blessing for the U.S. economy?," Business Review, Federal Reserve Bank of Philadelphia, issue Nov, pages 15-29.

    More about this item

    Keywords

    product innovation; mobile telephony; firm value;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rif:dpaper:1174. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kaija Hyvönen-Rajecki (email available below). General contact details of provider: https://edirc.repec.org/data/etlaafi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.