This paper explores the sources of firm-level scale economies in R&D, based on unique project-level data from a new large-scale survey of Japanese inventors, matched with firmlevel data. We focus on four sources: complementary assets, internal and external knowledge inflows, and inventor team...

The keys to effective teamwork in firms are (1) carefully designed team-formation policies that take into account what level of diversity of skills, knowledge, and demographics is desirable and (2) balanced team-based incentives. Employers need to choose policies that maximize the gains from...

The popular press often touts workforce demographic (e.g., ethnicity and age) diversity as profit enhancing. Diversity may reduce the firm's communication costs with particular segments of customers or yield greater team problem solving abilities. On the other hand, diversity also may raise...

An important yet under-explored question in the teamwork literature concerns how group characteristics affect productivity. Within a given teamwork setting, it is not obvious how group member diversity affects the performance of the individual and the group. The group may gain from knowledge...