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Do market pioneers maintain their innovative spark over time?

Authors Chiang, Jeongwen
Robinson, William T.
Issue Date 1997-07
Summary While a market pioneer often starts a new market with a very innovative product, is their spark for product innovation typically maintained over the decades? Product innovation strategies below compare market pioneers to late entrants. Across 1822 mature businesses in the PIMS (Profit Impact of Market Strategies) data, market pioneers have a higher probability than late entrants of investing in product innovation. In this sense, market pioneer's maintain their historic strategy of investing in product innovation. Even so, for businesses that invest in product innovation, late entrants have almost twice the level of new product sales as a percent of total sales. Because new products represent the highest degree of product innovation in the PIMS data, market pioneers no longer excel in terms of introducing major product innovations. The empirical evidence below indicates that for both the R&D and non-R&D component of major product innovations, various forces have extinguished the market pioneer's innovative spark.
Language English
Format Working paper
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