Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/25609 
Authors: 
Year of Publication: 
2007
Series/Report no.: 
Jena Economic Research Papers No. 2007,046
Publisher: 
Friedrich Schiller University Jena and Max Planck Institute of Economics, Jena
Abstract: 
The aim of this paper is an investigation on the role of demand in industrial dynamics. Despite the decades-long debate on demand and innovation, theory still lacks a comprehensive analytical formulation. This paper proposes a model where demand is conceived as a peculiar blend of two conditions, market size, and users’ sophistication. These conditions drive firms’ incentives to innovate. As main outcome, the paper proposes both a theoretical taxonomy of sectors and an original explanation of technological life cycle.
Subjects: 
Innovation
demand
industry life cycle
JEL: 
O31
O33
L15
Document Type: 
Working Paper

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