Innovation, Firm Size and Growth in a Centralized Organization
AbstractThe optimal innovation, firm size, and growth are derived for a centrally controlled firm in which only the entrepreneur evaluates and restores current projects or evaluates and adopts new projects. Current projects are subject to failure (due to entry) and possible obsolescence, while new projects may not be successful. The optimal allocation of attention implies bounds on firm size and that the rate of innovation depends not only on monopoly profits, firm size, and technological opportunity, but also on the probability of obsolescence. The effects of monopoly power and firm size on innovation also depend on the degree of obsolescence.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 23 (1992)
Issue (Month): 2 (Summer)
Contact details of provider:
Web page: http://www.rje.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Fiet, James O., 2001. "The pedagogical side of entrepreneurship theory," Journal of Business Venturing, Elsevier, vol. 16(2), pages 101-117, March.
- Katsuya Takii, 2005. "Limited Attention, Interaction and the Growth of a Firm," Macroeconomics 0506005, EconWPA.
- Fiet, James O., 2001. "The theoretical side of teaching entrepreneurship," Journal of Business Venturing, Elsevier, vol. 16(1), pages 1-24, January.
- Degner, Harald, 2010. "Windows of technological opportunity: do technological booms influence the relationship between firm size and innovativeness?," FZID Discussion Papers 15-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).
- Levesque, Moren, 2004. "Mathematics, theory, and entrepreneurship," Journal of Business Venturing, Elsevier, vol. 19(5), pages 743-765, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.