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R&D Composition over the Product Life Cycle

Saha, Souresh
1999-12
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1999-309.pdf (1.16 MB)

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https://hdl.handle.net/11299/55859
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R&D Composition over the Product Life Cycle

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1999-12

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Center for Economic Research, Department of Economics, University of Minnesota

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Working Paper

Abstract

Firms do product R&D (making new and better products) as well as process R&D (making cheaper products). There is evidence that firms devote an increasing share of R&D to process R&D over the life cycle of a product. There is also evidence that over time, the composition of buyers of a product shifts towards the lower end of the market. This paper distinguishes product and process R&D in terms of their relationship to the composition of buyers of a product. It uses this distinction to link the aforementioned facts and to explain the change in R&D composition over time.

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Center for Economic Research Discussion Papers

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Discussion Paper
309

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Saha, S., (1999), "R&D Composition over the Product Life Cycle", Discussion Paper No. 309, Center for Economic Research, Department of Economics, University of Minnesota.

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Saha, Souresh. (1999). R&D Composition over the Product Life Cycle. Retrieved from the University Digital Conservancy, https://hdl.handle.net/11299/55859.

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