Diseconomies of Scale

SxSW Video Clip - Diseconomies of Scale

SxSW Video Clip - Diseconomies of Scale

In the thirty year period from 1981 to 2011 the share of US R&D investment made by companies with more than 25,000 employees fell by more than half. Yes, the total investment in R&D rose substantially during this period, as did the number of companies with this many employees, but all of the growth in investment came from smaller enterprises. Startups and companies with fewer than 1,000 employees grew their share by almost six fold.

Radical Innovation

Radical Innovation

When conducting secondary research for The Chief Innovation Officer’s Playbook I came across a book review in the Harvard Business School Archive. The review was of a book published in 2000 titled Radical Innovation: How Mature Companies Can Outsmart Upstarts.