A Microeconometric Note on Product Innovation and Product Innovation Advertising

This paper seeks to explain why more than half of the German service sector firms that introduce a product innovations do not advertise their new or markedly improved product. One part of the explanation is that they do not need to advertise because they are closely related to their customers anyway, and another part of the explanation is that product innovation and product innovation advertising are strategic substitutes.

Kaiser, Ulrich (2005), A Microeconometric Note on Product Innovation and Product Innovation Advertising, Economics of Innovation and New Technology 14(7) , 573-582