Sitting on the fence: integrating the two worlds of scientific discovery and invention within the firm
Event details
| Date | 22.04.2021 |
| Hour | 17:00 |
| Speaker | Lia Sheer (Duke University - Fuqua School of Business) |
| Location |
Zoom
|
| Category | Conferences - Seminars |
Lia Sheer (Duke University - Fuqua School of Business)
"Sitting on the fence: integrating the two worlds of scientific discovery and invention within the firm"
Discussant: David Hsu (Wharton School - University of Pennsylvania)
Abstract
Applying a within-firm perspective to the topic of the division of innovative labor, I explore how the organization of scientific discovery at the firm level– specialized or integrated with invention- conditions the firm’s outcomes. Using data on inventors and authors related to U.S. publicly traded scientific firms for the period 1980-2015, I find that integration is related to a tradeoff between short-term applied R&D and long-term fundamental R&D. While integration is beneficial for invention, it has adverse effects on its scientific output, which decrease invention in the long run. I show consistent implications in terms of market value. Finally, I present three main determinants that condition this tradeoff: reliance on science, stage of technology, and market for technology. The paper deepens our understanding of the determinants and tradeoffs associated with the strategic choice of scientific discovery organization.
EPFL Virtual Innovation Seminar
EVIS is a bi-weekly virtual seminar series focusing on Science, Technology and Innovation topics studied through the lens of Economics, Entrepreneurship, Strategy and Finance.
"Sitting on the fence: integrating the two worlds of scientific discovery and invention within the firm"
Discussant: David Hsu (Wharton School - University of Pennsylvania)
Abstract
Applying a within-firm perspective to the topic of the division of innovative labor, I explore how the organization of scientific discovery at the firm level– specialized or integrated with invention- conditions the firm’s outcomes. Using data on inventors and authors related to U.S. publicly traded scientific firms for the period 1980-2015, I find that integration is related to a tradeoff between short-term applied R&D and long-term fundamental R&D. While integration is beneficial for invention, it has adverse effects on its scientific output, which decrease invention in the long run. I show consistent implications in terms of market value. Finally, I present three main determinants that condition this tradeoff: reliance on science, stage of technology, and market for technology. The paper deepens our understanding of the determinants and tradeoffs associated with the strategic choice of scientific discovery organization.
EPFL Virtual Innovation Seminar
EVIS is a bi-weekly virtual seminar series focusing on Science, Technology and Innovation topics studied through the lens of Economics, Entrepreneurship, Strategy and Finance.
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Practical information
- General public
- Free