Innovation dynamics under market uncertainty and financial constraints (C02)

• Subject Area: Mathematics ; Economic Theory
• Term: since 2017
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 317210226

The aim of this project is to characterize intertemporally optimal investment and market introduction strategies of financially constrained firms which compete on an established market and at the same time invest in the development of new products and new production capacities. Different types of technological and market uncertainty that firms might face are considered with particular focus on potential future discrete changes in the economic regime influencing the profitability of the market. A combination of analytical and numerical methods will be used to characterize firms’ equilibrium behavior and the resulting market dynamics. The developed methods will be applied in the context of specific challenges in industries facing strong uncertainty, such as the development and production of smart products.

• DFG Programme: Collaborative Research Centres
• Subproject of: SFB 1283: Taming uncertainty and profiting from randomness and low regularity in analysis, stochastics and their applications
• Applicant Institution: Universität Bielefeld
• Project Head: Professor Dr. Herbert Dawid