Applied multivariate statistics for the social sciences
Applied multivariate statistics for the social sciences
Mastering the dynamics of innovation: how companies can seize opportunities in the face of technological change
The Market Evolution and Sales Takeoff of Product Innovations
Management Science
The Market Evolution and Sales Takeoff of Product Innovations
Management Science
Research on Innovation: A Review and Agenda for Marketing Science
Marketing Science
Factors of broadband development and the design of a strategic policy framework
Telecommunications Policy
Diffusion of information and communication technologies: a takeoff analysis
International Journal of Business Information Systems
Strategic Entry Before Demand Takes Off
Management Science
Information Technology and Intangible Output: The Impact of IT Investment on Innovation Productivity
Information Systems Research
Diffusion of mobile handset features: Analysis of turning points and stages
Telecommunications Policy
Examining the growth of digital wireless phone technology: A take-off theory analysis
Decision Support Systems
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In contrast to the prevailing supply-side explanation that price decreases are the key driver of a sales takeoff, we argue that outward shifting supplyand demand curves lead to market takeoff. Our fundamental idea is that sales in new markets are initially low because the first commercialized forms of new innovations are primitive. Then, as new firms enter, actual and perceived product quality improves (and prices possibly drop), which leads to a takeoff in sales. To provide empirical evidence for this explanation, we explore the relationship between takeoff times, price decreases, and firm entry for a sample of consumer and industrial product innovations commercialized in the United States over the past 150 years. Based on a proportional hazards analysis of takeoff times, we find that new firm entry dominates other factors in explaining observed sales takeoff times. We interpret these results as supporting the idea that demand shifts during the early evolution of a new market due to nonprice factors is the key driver of a sales takeoff.