Abstract
The product life cycle connotes the idea that, comparable to humans and other organisms, new industries evolve through distinct and predictable stages. When industries are young, they are subject to high product innovation, rapid output growth, a build-up in the number of producers, and flux in firm market shares. As industries age, product innovation gives way to process innovation, output growth declines, the number of producers goes through a shakeout, and firm market shares stabilize. Evidence supporting this characterization is discussed and three alternative theoretical accounts of it are reviewed.
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Klepper, S. (2018). Product Life Cycle. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2851
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2851
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