Journal ArticleDOI
The Welfare Analysis of Product Innovations, with an Application to Computed Tomography Scanners
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In this article, the authors put forward a methodology for the measurement of product innovations using a value metric, that is, equating the "magnitude of innovations with the welfare gains they generate".Abstract:
The main goal of this paper is to put forward a methodology for the measurement of product innovations using a value metric, that is, equating the "magnitude" of innovations with the welfare gains they generate. This research design is applied to the case of computed tomography scanners, a revolutionary innovation in medical technology. The econometric procedure centers on the estimation of a discrete choice model (the nested multinominal logit), which yields the parameters of a utility function defined over the changing quality dimensions of the innovative product. The estimated flow of social gains from innovation is used to compute a social rate of return to R & D, to explore the interrelation between innovation and diffusion, and to trace the time profile of benefits and costs, the latter suggesting the possible occurrence of "technological cycles."read more
Citations
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Estimating Discrete-Choice Models of Product Differentiation
TL;DR: In this paper, the authors consider the problem of "supply-and-demand" analysis on a cross-section of oligopoly markets with differentiated products and propose estimation by "inverting" the market-share equation to find the implied mean levels of utility for each good.
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A Penny for Your Quotes : Patent Citations and the Value of Innovations
TL;DR: In this paper, the authors put forward patent counts weighted by citations as indicators of the value of innovations, thereby overcoming the limitations of simple counts, and found that simple patent counts are highly correlated with contemporaneous RD, however, the association is within afield over time rather than cross-sectional.
Posted Content
Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence
TL;DR: In this article, a survey of available economectric evidence accumulated over the past 35 years is presented to help organize and summarize the findings of econometric studies based on time series and cross-section data from various levels of aggregation (laboratory, firm, industry, country).
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Business Cycles: A Theoretical, Historical, and Statistical Analysis of the Capitalist Process.
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Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence
TL;DR: In this paper, the authors survey the body of available econometric evidence accumulated over the past 35 years and develop a framework for analysis of the problem of whether public R&D spending complementary and thus "additional" to private research, or does it substitute for and tend to "crowd out" private research.
References
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Journal ArticleDOI
Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition
TL;DR: In this article, a theory of hedonic prices is formulated as a problem in the economics of spatial equilibrium in which the entire set of implicit prices guides both consumer and producer locational decisions in characteristics space.
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Specification tests for the multinomial logit model
Jerry A. Hausman,Daniel McFadden +1 more
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Premiums for High Quality Products as Returns to Reputations
TL;DR: In this article, an equilibrium price-quality schedule for markets in which buyers cannot observe product quality prior to purchase is derived, and the effects of improved consumer information and of a minimum quality standard on the equilibrium price quality schedule are studied.