The Three Year Time Lag between Innovation Collaboration and New Product Introduction
Thomas E. Vass
The Private Capital Market
July 2, 2008
Private Capital Market Working Paper No. 2008-02-02
Our interest in writing this article is to create a bridge between the scholarly and academic research on technological innovation and a private sector, for-profit business model that implements the ideas on innovation and entrepreneurship, primarily in metro regional economies.
In this article we address the length of time from the moment the first person makes the suggestion, to the introduction of the new product for purchase to how long would it take for the idea to hatch.
We explain that the human brain interprets novel events by shuffling and filtering the new event against existing mental images to see how the new event compares to existing experiences. This same brain function occurs when the person first sees a new product and asks themselves, "Hey, I wonder how that new music box that takes pictures would work for me?"
The length of time sometimes depends on how close the new product looks to an existing product. It takes time for a new product to be bought by a consumer. However, many new product innovations are not destined for the retail market, but instead are commercialized in the intermediate demand markets within the value chains.
In this case, the length of time before a new product is first bought by a customer is shorter if the customer and product innovator hatched the new product in a social business collaboration.
Number of Pages in PDF File: 5
Keywords: New market emergence, Venture capital, regional innovation, private capital markets, Industrial value chains, , innovation, technology investments
JEL Classification: M13, O16, O31, O32, O33, R15, R58working papers series
Date posted: September 19, 2008
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