to develop the innovation and the decision to introduce the new product in the market are separated. In our multi … potential innovator strategically over-invests in process innovation in order to push the potential innovator to introduce the …

innovation of its competitor in this way. Overall, total payoffs depend non-monotonously on the capacities on the established …

We employ a dynamic market model with endogenous creation of submarkets to study the optimal product innovation … strategies of incumbent firms. Firms invest in production capacity and R&D knowledge stock, where the latter determines the … hazard rate of innovation. We find that under Markov Perfect Equilibrium behavior the firm with a larger market share on the …

homogeneous product. The firms invest in production capacities and simultaneously in R&D which determines their innovation rate … the cannibalization effect gives the smaller firm a higher innovation incentive. As a logical consequence we find that the …

We study in a dynamic framework how product innovation activities of a firm are influenced by its production capacity …