Firm Scope and Spillovers from New Product Innovation: Evidence from Medical Devices / Matthew Grennan, Charu Gupta, Mara Lederman.

Format:

Book

Author/Creator:

Grennan, Matthew.

Contributor:

National Bureau of Economic Research.

Gupta, Charu.

Lederman, Mara.

Series:

Working Paper Series (National Bureau of Economic Research) no. w25183.

NBER working paper series no. w25183

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Firm Scope and Spillovers from New Product Innovation

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2018.

Summary:

When firms span related product categories, spillovers across categories become central to firm strategy and industrial policy, due to their potential to foreclose competition and affect innovation incentives. We exploit major new product innovations in one medical device category, and detailed sales data across related categories, to develop a causal research design for spillovers at the customer level. We find evidence of spillovers, primarily associated with complementarities in usage. These spillovers imply large benefits to multi- vs. single-category firms, accounting for nearly one quarter of sales in the complimentary category (equivalent to four percent of revenue in the focal category).

Notes:

Print version record

October 2018.