New Product Development and Firm Value in Mobile Handset Production

Koski HeliKretschmer Tobias

We study the effect of new product introduction on firm value. Using a unique sample on mobile phone handset introduction by 16 major handset manufacturers over 10 years, we distinguish between imitative product introduction and truly innovative product introduction. We find that while most product introduction is imitative, both types of innovation increase firm value. However, truly innovative innovation is found to increase firm value by more than imitative introductions.

Publication info

Series
Discussion Papers no. 1174
Date
2009
Keywords
product innovation, mobile telephony, firm value
Pages
16
Price
10 €
Availability of print version
Language
English