The article discusses how research and development (R&D) in industries affect each other, where low input prices in one part lead to the creation of new products in another. When downstream firms introduce new products, it boosts demand for materials, encouraging upstream firms to innovate and cut costs. Efficient upstream R&D encourages downstream firms to introduce more new products. The timing of pricing plays a role, with upstream firms adjusting prices after seeing downstream investments. This strategy can sometimes slow down investments by downstream firms, but overall, more downstream investment leads to lower input prices in the long run.