The paper deals with the problem of how firms can innovate by exploiting strategic­ally both the change of technologies satisfying similar needs over time and the lag­gardness of some groups of users in adopting newer ones. This paper proposes a R&D approach based on the past. The integration...

Filson (2001) uses industry-level data on firm numbers, price, quantity, and quality along with an equilibrium model of industry evolution to estimate the nature and effects of quality and cost improvement in the personal computer industry and four other new industries. This paper studies the...