American Economic Journal: Macroeconomics
no. 3, July 2022
We investigate the determinants of radical ("creative") innovations that break new ground in knowledge creation. We develop a model focusing on the choice between incremental and radical innovation and on how managers of different ages and human capital are sorted across firms. Firm- and patent-level evidence reveals that firms that are more "open to disruption" are significantly more likely to engage in radical innovation and hire younger managers and inventors with a comparative advantage in radical innovation. However, once the effect of the sorting is factored in, the (causal) impact of manager age on creative innovations, though positive, is small.
Acemoglu, Daron, Ufuk Akcigit, and Murat Alp Celik.
"Radical and Incremental Innovation: The Roles of Firms, Managers, and Innovators."
American Economic Journal: Macroeconomics,
Firm Behavior: Empirical Analysis
Business Administration: General
Corporate Culture; Diversity; Social Responsibility
Innovation and Invention: Processes and Incentives
Intellectual Property and Intellectual Capital