Innovatie en economie - Factors mediating innovation - Company size and innovation

4 important questions on Innovatie en economie - Factors mediating innovation - Company size and innovation

How is the company size related to innovation?

Larger companies are at an advantage when it comes to innovation, because of the economies of scale that they have in R&D. In larger companies both R&D expenditures and the number of patents awarded are higher than in small ones.

Why are large companies not the main source of innovation?

Specific barriers to innovation certainly arise within large and well-established organizations and management has the challenge to recognizing and dealing with them.

What is the role of start-ups in new industries?

High-technology start-up companies are well known for their innovations and there are many examples where such firms, rather than the market leaders, have been responsible for the breakthroughs.
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What is an explanation of the high success rate for start-ups?

They have to go through a very demanding approval process to obtain venture capital.

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