Excerpt
Excerpt
Innovation and Business Growth. William Kerr, March 22, 2016, Book Chapter. "Innovation and the pursuit of new business opportunities is essential for growth at the firm level; moreover, it provides the foundation for an economy to achieve new levels of technological prowess, productivity and, ultimately, prosperity. This chapter describes recent work in economics and management scholarship on how firms grow. Given the other contributions in this conference volume, we focus specifically on questions surrounding the types of innovations that large and small firms pursue and how it impacts their relative growth rates. Developing evidence suggests that as firms become larger they have trouble maintaining the external innovations that are most powerful for growth, instead focusing increasingly on internal work and enhancements." Link