The Welfare Analysis of Product Innovations, with an Application to Computed Tomography Scanners

摘要: The main goal of this paper is to put forward a methodology for the measurement product innovations using value metric, that is, equating "magnitude" with welfare gains they generate. This research design applied case computed tomography scanners, revolutionary innovation in medical technology. econometric procedure centers on estimation discrete choice model (the nested multinominal logit), which yields parameters utility function defined over changing quality dimensions innovative product. estimated flow social from used compute rate return R & D, explore interrelation between and diffusion, trace time profile benefits costs, latter suggesting possible occurrence "technological cycles."