CORDIS Project
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This project examines how established companies decide between radical and incremental innovations when facing new competitors. It uses game theory to analyze how these decisions impact market competition and the signaling of market potential to rivals, which can influence their research and development investments.
The proposed project investigates an incumbent’s decision to pursue radical or incremental innovation when facing a rival entrant.
Radical innovations hold the promise of superior rewards and obsoleting the existing product technology, but beyond development risks market acceptance of these innovations are very difficult to predict.
Radical innovation is also particularly attractive to the rival entrant: if the market for it pans out, such an innovation obsoletes the existing technology and any…
SABANCI UNIVERSITESI
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