The Modeling of Market Forces Influence on Innovation Performance

DOI

10.2991/iscfec-18.2019.91How to use a DOI?

Keywords

The law of supply and demand, Innovation process, Modeling of innovation performance.

Abstract

This article provides a built and analyzed model of incremental technological innovations implementation which is based on the law of supply and demand. It is illustrated that the development of available technologies leads to the reduction of manufacturing costs, what, consequently, results in the increase of the quantity of manufactured goods and price reduction. However, revenue dynamics and profit margins are less clear, and the decrease after reaching the peak replaces the initial growth. It is proved that innovation performance depends on the slopes of supply and demand curves. Generally, innovation performance goes down along with the decrease of price elasticity of demand, and with the limit on the resources used in production. The proportionality ratio K is derived, and its high values lead to reduced efficiency of incremental innovations implementation.

Copyright

© 2019, 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  - A. B. Simonov
AU  - I. A. Tarasova
AU  - I. Ed. Simonova
PY  - 2019/01
DA  - 2019/01
TI  - The Modeling of Market Forces Influence on Innovation Performance
BT  - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2018)
PB  - Atlantis Press
SP  - 406
EP  - 409
SN  - 2352-5428
UR  - https://doi.org/10.2991/iscfec-18.2019.91
DO  - 10.2991/iscfec-18.2019.91
ID  - Simonov2019/01
ER  -