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An experimental study on the effect of knowledge on idea generation and idea selection

Author

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  • Irlenbusch, Bernd
  • Laske, Katharina
  • Schröder, Marina
  • Stoczek, Rika

Abstract

How firms generate and select ideas influences their strategic path and the development of entire industries. To better understand this process, we experimentally analyze the impact of knowledge on idea generation and selection in an incentivized ideation task. Between treatments, we vary whether or not ideators are provided with examples of previous successful ideas before working on the task. We provide causal evidence that knowledge about such example ideas leads to path dependencies, i.e., knowledge increases the similarity of new ideas to those provided. Consistent with the hypothesis that knowledge affects the search for new ideas, we find evidence of path dependencies during idea generation, but do not find statistically significant evidence of additional path dependencies during idea selection. Overall, when knowledge is provided, we observe an increase in selected innovative ideas that are similar to previous ideas and a decrease in selected innovative ideas that are different from previous ideas.

Suggested Citation

  • Irlenbusch, Bernd & Laske, Katharina & Schröder, Marina & Stoczek, Rika, 2026. "An experimental study on the effect of knowledge on idea generation and idea selection," LSE Research Online Documents on Economics 141263, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:141263
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    File URL: https://researchonline.lse.ac.uk/id/eprint/141263/
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    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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