Economic Analysis of Product Innovation: The Case of CT Scanners Book

Introduction

The Measurement of Innovations

The Magnitude of Innovations

A Method for Measuring Innovations

The Formal Derivation of the Surplus Function

The Construction of Quality-Adjusted Price Indices on the Basis of ΔW

AΔW-Based Indices versus Hedonic Prices

The Decomposition of W(·) and the "Taste for Horizontal Variety"

The Case of CT Scanners

The Ongoing Revolution in Diagnostic Technologies

The Story of CT Scanners

Diffusion and Regulation

Technical Aspects

Data and Sources

The Impact of Regulation on the Diffusion of CT Scanners

Determinants of the Adoption Time of CT for Individual Hospitals

The Assessment of Image Quality

Data on CT Scanners

The Choice of CT Scanners and the Dynamics of Preferences

Specification issues

Estimating the Hedonic Price Functions

The Estimation of the MNL

Head versus Body Scanners

The Nested Multinomial Logit Model

Changes in Preferences and Inducement Mechanisms

Derivation of Cross Elasticities in the Nested MNL

Surveys of Users of CT Scanners

Gains from Innovation in CT

Preliminary Issues in Computing the Gains

Incremental Gains from Innovation

Total Gains and the Interdependency of Innovation and Dffusion

R&D Expenditures and Social Returns

The Time Profile of Benefits and Costs

The Construction of Real Price Indices

Sources of Data on R&D Expenditures on CT

Patents as Indicators of Innovation

The Value of Patents

Using Patent Data

Patents in Computed Tomography

The Statistical Evidence

The Patents-R&D-Patents Connection and Other Extensions

The Usefulness of Patent Data

Online Search and Retrieval of Patent Data from Large Databases

A Statistical Analysis of Truncation and Age Effects

References

Index