Experimentation and Appropriability in Early-Stage Ventures: Evidence from the U.S. Software Industry

Working Papers

This study examines the tension between learning and appropriability in the experimentation process of early-stage ventures. I build a stylized model to argue that, when formal intellectual property is weak, the learning benefit of experimentation may be offset by its imitation risk. Read More

Breakthrough Recognition: Bias Against Novelty and Competition for Attention

Published Research

Adding to the literature on the recognition and spread of ideas, and alongside the bias against novelty view documented in prior research, we introduce the perspective that articles compete for the attention of researchers who might build upon them. Read More

Big Pushes, Little Hollywoods: Local Economic Development Effects of Film Tax Credit Lotteries

Working Papers

The extent to which local incentive policies (such as subsidies and tax credits) are effective at spurring new centers of innovation, and whether these incentives induce overall productivity growth or just a shift of production from one region to another, is the subject of this proposal.Read More

Innovation Strategy after IPO: How Data Analytics Mitigates the IPO Penalty on Innovation

Working Papers

This proposal explores how the new generation of information technologies (IT) including AI, automation and data analytics, affect how firms innovate. In particular, we focus on the effect of innovation after a firm went through an IPO. Read More

Firm Responsiveness to Location Subsidies: Regression Discontinuity Estimates from a Tax Credit Formula

Working Papers

In 2011, California Governor Jerry Brown recognized several of the state’s existing firm incentive policies aimed at catalyzing innovative activity in the state, to be ineffectual, citing poor incentive design.Read More

Do Ratings Cut Both Ways? Impact of Bilateral Ratings on Platforms

Working Papers

Bilateral rating systems impact pricing and capacity in two-sided markets. The bilateral rating mechanisms will enable customers to maintain and care for shared services, through reputational mechanisms, increasing social welfare. Read More

Are Closer Workers More Productive?

Working Papers

We examine the effects of workplace-home distance on worker productivity. We construct a novel panel of U.S. inventors with precisely measured workplace-home distances and a direct measure of productivity via patents. Read More

Organizational Change and the Dynamics of Innovation: Formal R&D Structure and Intrafirm Inventor Networks

Working Papers

Prior studies have shown associations between organizational structure and innovation. However, most have been static and cross sectional, only showing variation across firms. This gap is problematic because it is not clear if firms can use structure as a lever to direct their research outcomes.Read More

Resource Competition, Amplification, and the Evolution of Performance Differences

Working Papers

How do ex ante similar firms develop heterogeneous resource positions that lead to persistent performance differences, even among direct competitors? The model in this paper shows that resource competition drives amplification of small differences in resource positions into large performance differences.Read More

Risk Sharing Agreements for New Medical Treatments

Working Papers

The clinical-trial data used to make approval decisions for medical therapies are collected from a relatively small patient sub-populations. Given small sample sizes, trial data may suggest that treatments are medically or economically nonviable, even though they ultimately may be, or vice versa. Read More

Blockchain and the Value of Operational Transparency

Working Papers

The project aims to explore the extent to which blockchain technology can be ported to alleviate information asymmetry issues in the context of supply chain financing. In particular, firms seeking the capital needed to efficiently run their operations are often impeded by severe information asymmetry issues. Read More

Pursuing the New While Sustaining the Current: Incumbent Strategies and Firm Value During the Nascent Period of Industry Change

Published Research

This study considers the nascent period of industry change when the prevalent business model is being threatened by a new model, but there is significant uncertainty with respect to whether and when the new model will dominate. Read More

Needless Distraction or Font of Knowledge: Understanding the Relationship between Divestitures and Innovation

Working Papers

Few studies have examined the impact of divestitures on the innovation performance of firms. In particular, little attention has been paid into how the divestiture of firms’ non-core businesses could influence the innovation outcomes of their core businesses. Read More

Why Do Firms Offer Dicey Perks? The Case of Unlimited Vacation

Working Papers

The use of employee perks is becoming increasingly important to organizational competitiveness. Consequently, innovating along the human resource dimension has become a strategy imperative for many firms. Typically, firms introduce perks that are complementary to work. However, another set of perks that makes it easier for people to leave the workplace has gain more popularity over time. Read More

Intellectual Property Rights, Professional Business Services and Top Wage Inequality

Working Papers

High skill labor demand is infrequent but firms cannot adjust perfectly due to several adjustment costs. Professional Business Services (PBS) sector help alleviate this problem by allowing high skill labor to move across firms, reducing idiosyncratic part of labor demand risk.Read More

Frenemies: The Influence of Competitors’ Cooperation on Technological Adoption

Working Papers

The development and adoption of new innovative technologies confront firms into making decisions in highly uncertain environment. Past experience and the available public information are seldom sufficient to support firms in their decision process; firms ability to experiment and produce new information is then paramount. Read More

Doing Good for (Maybe) Nothing: Motive Inferences when Rewards are Uncertain

Working Papers

Consumers are often skeptical of social innovation (e.g., CSR), thinking that firms undertake such innovations to increase profit rather than to “do the right thing.” How can firms convey the social and monetary benefits of investing in social innovations to consumers and stakeholders to best improve their brand image?Read More