Document Type
Article
Publication Date
10-2002
Publication Title
Management Science
First Page
1268
Last Page
1284
DOI
http://dx.doi.org/10.1287/mnsc.48.10.1268.270
Abstract
We model a firm's decisions about product innovation, focusing on the extent to which features should be improved or changed in the succession of models that comprise a life cycle. We show that the structure of the internal and external environment in which a firm operates suggests when to innovate to the technology frontier. The criterion is maximization of the expected present value of products during the life cycle. Computational studies complement the theoretical results and lead to insights about when to bundle innovations across features. The formalization was influenced by extensive interviews with managers in a high-technology firm that dominates its industry.
Rights
This is a post-print version of an article originally published in Management Science,1998 Volume , Issue 1. The version of record is available through INFORMS.
Recommended Citation
Paulson Gjerde, Kathy A.; Slotnick, S. A.; and Sobel, M. J., "New Product Innovation with Multiple Features and Technology Constraints" (2002). Scholarship and Professional Work - Business. 4.
https://digitalcommons.butler.edu/cob_papers/4
