Title
Innovation or Imitation: Some Economic Performance and Social Welfare Policy Perspectives
Document Type
Article
Publication Date
2011
DOI
https://doi.org/10.4018/jissc.2011070104
Abstract
This paper develops a mathematical model of innovation in technology with two main characteristics. First, it discusses the endogenously made decision on not only how much to innovate, but also, how much to imitate. Second, it demonstrates that the decision to innovate or imitate are not mutually exclusive and a firm can innovate and imitate simultaneously. A mathematical model is presented, and the authors explain the barriers to innovation development and diffusion. The model is further used to investigate the effectiveness of two technology innovation and imitation policies. It is shown that an intellectual property right (IPR) policy will better function if the price of innovation is set to a level lower than the cost of innovation. The concept “superfluous innovation” (innovations whose costs are higher than their benefits) is also proposed and developed through investigating the policy of levying subsidies on innovation.
Language
English
Recommended Citation
Ghili, Soheil; Shams, Hengameh; and Tavana, Madjid, "Innovation or Imitation: Some Economic Performance and Social Welfare Policy Perspectives" (2011). Business Systems and Analytics Faculty Work. 280.
https://digitalcommons.lasalle.edu/bsa_faculty/280
Comments
Ghili, S., Shams, H. and Tavana, M. (2011) ‘Innovation or Imitation: Some Economic Performance and Social Welfare Policy Perspectives,’ International Journal of Information Systems and Social Change, Vol. 2, No. 3, pp. 48-66.