Abstract
This paper studies research and development (R &D) for product innovation of firms faced with “product life cycles.” We represent the concept of product life cycles with bounded revenue and profit functions and describe R &D for product innovation as an activity to control the “birth rate of a new product” (i.e., the probability of product innovation). We then derive the optimal level of R &D, corresponding to the optimal birth rate of a new product, and show that the growth rate of the firm’s expected total revenue converges to the optimal birth rate of a new product in the long run.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
