Question: Learning how to use software takes time. So once customers have learned to use a particular software package, it is easier to sell them software

Learning how to use software takes time. So once customers have learned to use a particular software package, it is easier to sell them software upgrades than to convince them to switch to new software. What implications does this have for expected rates of return on R&D spending for software firms developing upgrades versus firms developing imitative products?

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