Evolutionary Game Analysis of Product Innovation Strategy between Two Competitor-oriented Companies

DOI

10.2991/itms-15.2015.126How to use a DOI?

Keywords

radical innovation product strategy; incremental innovation product strategy; competitor-oriented companies; evolutionary game analysis component

Abstract

The existing research on product innovation mainly focused on the impact factors, paths and impact effects, etc.. However, the topic of how a company chooses product innovation strategy to cope with the competitor’s is rarely studied. This article uses evolutionary game theory approach to model and study the choice of product innovation strategy between two competitor-oriented companies. Game analysis results show that evolutionary stable strategies exist in four scenarios and radical product innovation strategy is the only way to realize long-term development of the companies and market. In order to win in the competition, companies should adopt specific product strategy according to different situations, and they should pay more importance to radical product innovation strategy to maintain long-term competitive advantage.

Copyright

© 2015, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Sili Wang
AU  - Dahai Dong
AU  - Jiajia Meng
PY  - 2015/11
DA  - 2015/11
TI  - Evolutionary Game Analysis of Product Innovation Strategy between Two Competitor-oriented Companies
BT  - Proceedings of the 2015 International Conference on Industrial Technology and Management Science
PB  - Atlantis Press
SP  - 524
EP  - 528
SN  - 2352-538X
UR  - https://doi.org/10.2991/itms-15.2015.126
DO  - 10.2991/itms-15.2015.126
ID  - Wang2015/11
ER  -