Innovation Timing and Product Renewal
When new high-technology products or services are developed, in some sense the newer the better. While it takes time for knowledge of the product to diffuse into the marketplace, and perhaps some time for minor bugs to be worked out, in essence the new product has the most value when new, and aging only decreases its value. How fast does this value erode, and how often should improved versions be released? Often, the technology loses value slowly, and new releases only waste resources. The model has interesting implications for both sustainable product development and for marketing.