Impact of Downstream Competition on Innovation in a Supply Chain

@inproceedings{Wang2012ImpactOD,
  title={Impact of Downstream Competition on Innovation in a Supply Chain},
  author={Jingqi Wang and Hyoduk Shin},
  year={2012}
}
We explore the impact of downstream competition on upstream innovation in a supply chain consisting of an upstream supplier who invests in innovation and downstream manufacturers who sell to consumers. We show that the impact of downstream competition between manufacturers on innovation depends on the contract form linking the manufacturers and the supplier. If it is the supplier who sets the wholesale price, downstream competition does not affect upstream innovation. However, if it is the… CONTINUE READING

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