Modeling Global Spill-Over of New Product Takeoff

59 Pages Posted: 21 Nov 2008

See all articles by Yvonne M. van Everdingen

Yvonne M. van Everdingen

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

D. Fok

Econometric Institute - Erasmus University Rotterdam; Erasmus Research Institute of Management (ERIM); Tinbergen Institute Rotterdam

S. Stremersch

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Date Written: 24 2008, 10

Abstract

This article examines the global spill-over of foreign product introductions and takeoffs on a focal country’s time-to-takeoff, using a novel data set of penetration data for 8 high tech products across 55 countries. It shows how foreign clout, the susceptibility to foreign influences, and inter-country distances affect global spill-over patterns. The authors find that foreign takeoffs, but not foreign introductions, accelerate a focal country’s time-to-takeoff. The larger the country, the higher its economic wealth, and the more it exports, the more clout it has in the global spill-over process. In contrast, the poorer the country, the more tourists it receives and the higher its population density, the more susceptible it is to global spill-over effects. Cross-country spill-over effects are stronger the closer the countries are to one another, both geographically and economically, but not necessarily in terms of culture. The model the authors develop also quantifies the spill-over between each country-pair, allowing it to be asymmetric.

Keywords: new product takeoff, hazard model, global, cross-country, spill-over

JEL Classification: C44, M31, M, O57

Suggested Citation

van Everdingen, Yvonne M. and Fok, Dennis and Stremersch, Stefan, Modeling Global Spill-Over of New Product Takeoff (24 2008, 10). ERIM Report Series Reference No. ERS-2008-067-MKT. Available at SSRN: https://ssrn.com/abstract=1303879

Yvonne M. Van Everdingen (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Dennis Fok

Econometric Institute - Erasmus University Rotterdam ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 1333 (Phone)
+31 10 408 9162 (Fax)

Tinbergen Institute Rotterdam ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Stefan Stremersch

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands
+31 10 408 8719 (Phone)
+31 10 408 9160 (Fax)

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