A Study Of The Diffusion Model For Upgraded And New Products In The Non Total Competition Context

A review of China's economic development since the open policy well indicates that most regions have accomplished the elementary factor-driven stage and investment-driven stage and is entering the innovation-driven stage. The government has correctly predicted the arrival of this important stage of economic development, in its programmatic document — National Economic and Social Development During the 11^th Five-Year Plan — by promoting the technological innovation system based on the integrity of the subject status of the enterprise, market-orientation and integration of production, education and research, by encouraging technological innovation and creation, and by enhancing digestion and absorption of introduced technology.Diffusion of technology and innovation is an important area of the study of technological innovation, which is the follow-up stage of technological innovation in its broad sense. A technological innovation itself (in the narrow sense) is limited in its impact on the economic development and improvement of productivity. Only by means of diffusion can its economic potential be fully accomplished. There have been two leaps of progress in the west regarding their policies on science and technology. In the 1970s, the idea that "Innovation is more important than research and development" was promoted while in the 1980s the idea that "Diffusion outweighs innovation" was advocated.This thesis features an in-depth study of the diffusion pattern of upgraded and new products in the non-total competition context, on the basis of the studies at home and abroad on technological innovation and diffusion of innovative technology, and in light of the limitations of the Bass Model Set. (1) With the Markov Chain as the major mathematical instrument, a diffusion model for the current upgraded and new products, characterized by innovative enterprises' strategy of promoting brand and characteristic of consumers' customary (habitual and loyal) purchase, is constructed. The model extends Mahjan's brand competition diffusion model and supplies a new approach to the research in innovation diffusion among the potential users of differentiate nature, on the one hand. It also provides a new method for the study of the impact of marketing strategies on diffusion of innovative products, on the other. (2) A condition-specific game model is constructed for development of new products characteristic of consumers' customary (habitual and loyal) purchase. In theory, on the basis of this model, an integral game is assumed possible for the development strategy, brand strategy and promotion effort for new products characteristic of consumers' customary (habitual and loyal) purchase. (3) On the premise that customers remain loyal to their suppliers (upper enterprises), an innovation game model for enterprises of duopoly status specializing in immediate products is constructed. (4) By introducing the new concepts such as innovation identification, a diffusion model for partial substitution-based new products is...