Innovation and Imitation Strategies in the Age of the Upgrade โ€“ An Agent-Based Simulation Model

conference
Published

May 31, 2017

๐Ÿ—“๏ธ Event 10th European Meeting on Applied Evolutionary Economics
๐Ÿ“… Date 31 May 2017
๐Ÿ“ Location Strasbourg, France
๐Ÿ“ฅ Slides Download
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Product life-cycles in markets for innovative products are shortening, con- sumers rapidly upgrade from one product generation to the next and demand constant technical improvement. Firms are racing against each other and the consumersโ€™ rising ex- pectations. This study uses an agent-based simulation model to analyze the dynamics of innovation and imitation strategies in this new type of market from the firm perspective. Firms use pure and mixed strategies to achieve maximum profitability over the life-cycle of a market for a new product category. It is found that strategies involving innovation outperform those that rely only on imitation, even in absence of any protective measures like patenting or branding.

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