THE MARKET DYNAMICS OF VALUE INNOVATION stand in stark contrast with the conventional practice of technology innovation. The latter typically sets high prices, limits access, and initially engages in price skimming to earn a premium on the innovation and only later focuses on lowering prices and costs to retain market share and discourage imitators.
However, in a world of nonrival and nonexcludable goods, such as knowledge and ideas that are imbued with the potential of economies of scale, learning, and increasing returns, the importance of volume, price, and cost grows in an unprecedented ...
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