This paper proposes to develop theoretical underpinnings for R&D and innovation market processes and explain how market interactions yield, or fail to yield, efficient outcomes such as quality products. This paper contextualizes R&D and innovation processes in a technology-supply-push (TSP) and user-demand-pull (UDP) framework. The simultaneous recognition of the TSP and the UDP dimensions of R&D and innovation yields key observations concerning the importance of bargaining, incentives and allocation of rewards facilitating or impeding convergence toward desired outcomes. A game-theoretic or "even-swaps" approach is adopted to explain actor interaction. This research places emphasis on understanding "who gets what and how". Managers should develop and implement R&D and innovation processes explicitly accepting interactive inputs with awareness of underpinnings related to market interactions, incentives and rewards.
展开▼
