The problem: flying blind -- Misconception 1: small companies are more innovative -- Misconception 2: uncontested markets are good for innovation -- Misconception 3: spending more on R&D increases innovation -- Misconception 4: companies need more radical innovation -- Misconception 5: open...

Absorptive capacity is the principle that assimilating new knowledge requires prior knowledge. The attendant prescription is to invest more in R&D to derive greater benefit from the R&D of others (spillovers). Empirical tests of R&D productivity typically find absorptive capacity (R&D* rival...

Routines are important to competitive advantage. While the routines literature deals with their replication, it tends to ignore their origins. One exception is Winter and Szulanski who argue routines are discovered over time. We offer a competing view that routines be designed-- to both improve...

Approximately 80-90 percent of new firms ultimately fail. The tendency is to think of this failure as wasteful. We, however, examine whether there are economic benefits to offset the waste. We characterize three potential mechanisms through which excess entry affects market structure, firm...