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Soft InnovationEconomics, Product Aesthetics, and the Creative Industries$
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Paul Stoneman

Print publication date: 2010

Print ISBN-13: 9780199572489

Published to Oxford Scholarship Online: May 2010

DOI: 10.1093/acprof:oso/9780199572489.001.0001

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The Supply of Soft Innovations

The Supply of Soft Innovations

Chapter:
(p.159) 7 The Supply of Soft Innovations
Source:
Soft Innovation
Author(s):

Paul Stoneman

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199572489.003.0007

This chapter considers alternative models of the supply of soft innovations relying heavily on models of product differentiation. Existing models of product differentiated markets are adapted to allow for a number of different scenarios that reflect some of the characteristics of products that may embody soft innovation. These include issues such as whether production and innovation coincide, whether the product is durable or not, whether the service flow requires hardware and software, and whether there are standards and compatibility issues. Of particular interest (because it fits the examples of books, recorded music and video games) is the consideration of models where product variants are usually only bought once and continuation of the market requires continual launching of new product variants.

Keywords:   compatibility, hardware, product differentiation, software, supply of innovations, standards, R&D

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