30 June 2008
Through this research, we wish to demonstrate the bond between the flow of know-how and the growth of the economical potential, translated through the lowering of the fixed costs for the innovation process, this being one of the few solutions which offer continuous profits to the share holders as the pressure to attract new customers and to face the competition forced them to lower their prices. To achieve the innovative process, a company should counteract the effects of the growing fixed costs and only if the revenues overcome the costs, the next step will be setting up production and selling. We will show in our research how this simple theoretical model will drive us towards a specific regression model, which shall be called the model of stochastic limit. The regression model will correspond to the econometrical model, proving that the resulted restrictions are sufficient to determine the limit, supposed to be specific for each company. We will be able to state that the variable which affects the fixed costs does not have a direct influence over the sales; sufficiently to identify the parameters of the limit model. Though we cannot evaluate directly the fixed costs, we can still identify the determinants of the limit and the sales point associated to the innovative products.