Processes, Complexities and Ecological Similarities
Chapter 3: Diversity of consumers, product innovation and economic performance
Standard economic analysis gives little attention to the important role of the diversity of the characteristics of consumers (or more generally, of buyers) in influencing product and service innovation. Such diversity is able to improve the dynamic performance of economies. Even Schumpeter (1942) focuses his theory of innovation on the supply side of markets and fails to consider the contribution of buyers to the process of innovation. In reality, the attributes of both buyers and sellers can have important ramifications for the dynamic performance of economies. The purpose of this chapter is to show the importance of the diversity of various attributes of buyers for the dynamic performance of economies. Although several other chapters in this book give more attention to the consequences for economic performance of diversity of the relevant characteristics of businesses, this aspect is also given some attention here.
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