Search, Failure, and the Value of Moderate Patience
AbstractConventional wisdom suggests that successful innovation in complex and novel environments requires patience – persistence despite failures – to ensure broad search for good solutions. Using an agent-based simulation model, I show that the link between patience and innovation is complex: Moderate levels of patience promote broad and effective search. High levels of patience, in contrast, can have unintended effects and even decrease performance despite increasing the degree of search. Furthermore, because translating the gains of patience into performance improvements requires time, low levels of patience are generally optimal for shorter time frames. My findings indicate that paying attention to how patience affects both the explorative and exploitative aspects of search can show when patience may effectively boost innovation.
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Bibliographic InfoArticle provided by LMU Munich School of Management in its journal Schmalenbach Business Review.
Volume (Year): 62 (2010)
Issue (Month): 3 (July)
Agent-Based Simulation; Complexity; Experimentation; Moderate Patience; Search; Innovation.;
Find related papers by JEL classification:
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
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