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A Scientific Approach to Innovation Management: Theory and Evidence from Four Field Experiments

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Listed:
  • Gambardella, Alfonso
  • Camuffo, Arnaldo
  • Messinese, Danilo
  • Novelli, Elena
  • Paolucci, Emilio
  • Spina, Chiara

Abstract

This paper studies the implications of an approach in which managers and entrepreneurs make decisions under uncertainty by formulating and testing theories such as scientists do. By combining the results of four Randomized Control Trials (RCTs) involving 754 start-ups and small-medium enterprises and 10,730 data points over time, we find that managers and entrepreneurs who adopt this approach terminate more projects, do not experiment with many new ideas, and perform better. We develop a model that explains these results.

Suggested Citation

  • Gambardella, Alfonso & Camuffo, Arnaldo & Messinese, Danilo & Novelli, Elena & Paolucci, Emilio & Spina, Chiara, 2021. "A Scientific Approach to Innovation Management: Theory and Evidence from Four Field Experiments," CEPR Discussion Papers 15972, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15972
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    References listed on IDEAS

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    1. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1351-1408.
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    More about this item

    Keywords

    Scientific entrepreneurship; Management practices; Field experiments; Strategic decision-making; Uncertainty;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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