Economics Of Innovation - Publications - Faculty & Research - Harvard Business School

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2021
Report

The Economic Impact of the Market-Making Internet Advertising, Content, Commerce, and Innovation

By: John A. Deighton and Leora Kornfeld

This research about the economic value of the Internet is conducted approximately every four years and highlights the importance of the internet ecosystem, which enables job creation and market-making opportunities. This highly valued, extensive piece of economic... View Details

Keywords: Internet and the Web; Digital Marketing; Innovation and Invention; Communication Technology; Social Media; Advertising; Value; Brands and Branding

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November 2023
Case

Gabon Special Economic Zone

By: John Macomber and Wale Lawal

Tropical rain forest covers about 80% of the West African nation of Gabon, part of the Congo Basin and the "lungs of the world." Gabon is one of the first nations to earn revenue from carbon sequestration...as long as the rain forest remains intact. There are... View Details

Keywords: Economic Development; Forestry; Wood; Carbon Credits; Supply Chain; Economic Growth; Developing Countries and Economies; Climate Change; Environmental Sustainability; Government Administration; Business and Government Relations; Strategy; Forest Products Industry; Africa; Gabon

January 2015
Background Note

Note on Economic Inequality (2015)

By: Clayton S. Rose and Aldo Sesia

For over half a century, most of the world's economies have enjoyed steady growth and prosperity. However, beginning in the 1980s, and continuing essentially unabated to the present, the gap between the "haves" and the "have-nots" in developed countries has widened,... View Details

Keywords: Economic Inequalty; Income Inequality; Growth and Development; Economics; Equality and Inequality; Society; Problems and Challenges; United States

Research Summary

The Economics of Digitization

By: Shane M. Greenstein

What is the value of digital platforms that build on user-generated content? How well do existing frameworks explain the value of these businesses? While drawing on prior work, this research stream examines new issues in parts of the economy that previously were... View Details

June 2013 (Revised March 2015)
Case

Open Innovation at Siemens

By: Karim R. Lakhani, Katja Hutter, Stephanie Healy Pokrywa and Johann Fuller

The case describes Siemens, a worldwide innovator in the Energy, Healthcare, Industry, and Infrastructure & Cities sectors, and its efforts to develop and commercialize new R&D through open innovation, including internal and external crowdsourcing contests. Emphasis is... View Details

Keywords: Innovation; Innovation Management; Crowdsourcing; Innovation Strategy; Innovation and Management; Knowledge Management; Knowledge Sharing; Research and Development; Information Technology; Energy Industry; Health Industry; Green Technology Industry; Manufacturing Industry

September 21, 2018
Article

Innovation Should Be a Top Priority for Boards. So Why Isn't It?

By: J. Yo-Jud Cheng and Boris Groysberg

Corporate directors and executives alike recognize that today’s pace of change continues to accelerate and that firms need to innovate to stay ahead. But are boards doing enough to support innovation, as they should? We conducted a survey of over 5,000 board members... View Details

Keywords: Board Of Directors; Innovation; Technology; Innovation and Invention; Corporate Governance; Governing and Advisory Boards; Business Strategy

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1998
Chapter

The Changing Economics of Problem-Solving: Some Implications for Innovation and Competitiveness

Keywords: Problems and Challenges; Economics; Innovation and Invention; Competition

2017
Chapter

Innovation Policies

By: Ramana Nanda and Matthew Rhodes-Kropf

Past work has shown that failure tolerance by principals has the potential to stimulate innovation, but has not examined how this affects which projects principals will start. We demonstrate that failure tolerance has an equilibrium price – in terms of an investor’s... View Details

Keywords: Innovation; Investing; Abandonment Option; Failure Tolerance; Innovation and Invention; Venture Capital; Attitudes; Investment; Failure

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2017
Working Paper

Innovation Policies

By: Ramana Nanda and Matthew Rhodes-Kropf

Past work has shown that failure tolerance by principals has the potential to stimulate innovation, but has not examined how this affects which projects principals will start. We demonstrate that failure tolerance has an equilibrium price ― in terms of an investor's... View Details

Keywords: Innovation; Investing; Abandonment Option; Failure Tolerance; Venture Capital; Attitudes; Investment; Failure; Innovation and Invention

March 2013
Article

Misvaluing Innovation

By: Lauren Cohen, Karl Diether and Christopher Malloy

We demonstrate that a firm's ability to innovate is predictable, persistent, and relatively simple to compute, and yet the stock market ignores the implications of past successes when valuing future innovation. We show that two firms that invest the exact same in... View Details

Keywords: Innovation; Return Predictability; R＆D; Information; Forecasting and Prediction; Research and Development; Innovation and Invention

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2020
Working Paper

Inventing the Endless Frontier: The Effects of the World War II Research Effort on Post-War Innovation

By: Daniel P. Gross and Bhaven N. Sampat

During World War II, the U.S. government launched an unprecedented effort to mobilize science for war: a newly-established Office of Scientific Research and Development (OSRD) entered thousands of R&D contracts with industrial and academic contractors, spending one to... View Details

Keywords: World War II; Vannevar Bush; OSRD; Mission-oriented R＆D; Direction Of Innovation; Geography Of Innovation; Technology Clusters; U.S. Innovation System; Innovation and Invention; Research and Development; Problems and Challenges; War; History; Government Administration; United States

May 2020
Article

Ancient Origins of the Global Variation in Economic Preferences

By: Anke Becker, Benjamin Enke and Armin Falk

This paper shows that contemporary population-level heterogeneity in risk aversion, time preference, altruism, positive reciprocity, negative reciprocity, and trust partly traces back to the structure of the migration patterns of our very early ancestors. To document... View Details

Keywords: Migration Patterns; Behavioral Economics; Preferences; Microeconomics; Demography; Decision Making; Risk and Uncertainty; History; Global Range

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11 Nov 2013

2+2 Information Session: University of Oklahoma

The information session is an opportunity for college and master degree students to learn more about the 2+2 application process to the MBA program and ask questions to an Admissions Board Member. The session will begin at 6:00 PM CST at OU Research Campus, Three... View Details

Research Summary

The Economics of Search

Utilizing data on web searches, we characterize the economics of search and estimate the path of diffusion for information, allowing us to specify how choice sets are actually formed among consumers and examine the impact of cybergeography vs. spatial geography. Joint... View Details

March 2022 (Revised January 2023)
Case

Innovation at Moog Inc.

By: Brian J. Hall, Ashley V. Whillans, Davis Heniford, Dominika Randle and Caroline Witten

This case focuses on the challenges of incentivizing innovation within Moog, an engineering company based in New York state that designs and builds guidance systems for space, air, and land-based travel. The case enables students to grapple with the challenges of using... View Details

Article

Strategies for the Bottom of the Economic Pyramid: India as a Source of Innovation

By: V. Kasturi Rangan

Keywords: Strategy; Economics; Innovation and Invention; India

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16 Feb 2018
Working Paper Summaries

A New Categorization of the US Economy: The Role of Supply Chain Industries in Innovation and Economic Performance

Keywords: by Mercedes Delgado and Karen G. Mills; Manufacturing

August 2018
Article

Growth Through Heterogeneous Innovations

By: Ufuk Akcigit and William R. Kerr

We build a tractable growth model where multi-product incumbents invest in internal innovations to improve their existing products, while new entrants and incumbents invest in external innovations to acquire new product lines. External and internal innovations generate... View Details

Keywords: Endogenous Growth; Innovation; Citations; Scientists; Entrepreneurs; External; Internal; Patents; Innovation Strategy; Entrepreneurship; Economic Growth; Research and Development; Science

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2019
Working Paper

Using Technology to Augment Professionals, Instead of Replacing Them, for Innovative Problem Solving

By: Hila Lifshitz - Assaf, Felicia Ng, Aniket Kittur and Robert Kraut

While in some technological and scientific areas innovation is flourishing, in others it is stalling, leaving important problems unsolved for decades. One explanation is professionals’ limitations as problem solvers, as accumulating depth of knowledge enhances one’s... View Details

Keywords: Innovation; Expertise; Future Of Work; Crowdsourcing; Artificial Intelligence; Problem Solving; Professionalism; Experience and Expertise; Collaborative Innovation and Invention; Problems and Challenges; Research and Development

2020
Article

Humanizing Management and Innovation

By: Hirotaka Takeuchi

This article is an excerpt from The Wise Company book that Ikujiro Nonaka and I published in October 2019 from Oxford University Press. It is a sequel to The Knowledge-Creating Company book we published 25 years ago. As our thinking evolved from information to... View Details

Keywords: Knowledge Creation; Knowledge Practice; Phronesis; Practical Wisdom; Ba; Continuous Innovation; Fusion Of Analog And Digital; Management As A Way Of Life; Management Style; Emotions; Innovation and Management

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