New Product Innovation with Multiple Features and Technology Constraints

  • Paulson Gjerde K
  • Slotnick S
  • Sobel M
  • 77


    Mendeley users who have this article in their library.
  • 51


    Citations of this article.


We model a firm's decisions about product innovation, focusing on the extent to which features should be improved or changed in the succession of models that comprise a life cycle. We show that the structure of the internal and external environment in which a firm operates suggests when to innovate to the technology frontier. The criterion is maximization of the expected present value of profits during the life cycle. Computational studies complement the theoretical results and lead to insights about when to bundle innovations across features. The formalization was influenced by extensive interviews with managers in a high-technology firm that dominates its industry.

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document


  • Kathy A. Paulson Gjerde

  • Susan A. Slotnick

  • Matthew J. Sobel

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free