Monthly Archives: December 2017

Innovation and bankruptcy

Recently, I described academic studies suggesting that corporate innovation is fostered by labor laws that limit firms’ ability to discharge employees at will. These studies provide support to the idea that the best way to encourage risk-taking and experimentation is … Continue reading

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Innovation and IPO

Of all business processes, innovation is arguably the riskiest and most unpredictable; the rate of failure of innovation projects is shockingly high compared to other corporate programs and initiatives. Identifying factors that would make innovation more sustainable is therefore critical. … Continue reading

Posted in Innovation, Startups | Tagged , , , , | 2 Comments

The dose is everything: how much labor protection is good for innovation

A theoretical concept proposed by Gustavo Manso in 2011 (I wrote about it here) postulates that the optimal combination of incentives that motivate employees to innovate must include tolerance for failure in the short term and reward for success in the long … Continue reading

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The “labor law” of innovation

One might assume that pro-worker labor laws, due to their association with lower levels of investment, productivity and output, would have a negative effect on innovation. In fact, academic studies indicate that more stringent employment laws help firms and their … Continue reading

Posted in Innovation | Tagged , , , | 5 Comments