TY - CHAP
T1 - Commercializing, catalyzing or cutting innovation? The roles of large acquirers in US global competitiveness
AU - Miller, Douglas J.
AU - Sears, Joshua B.
N1 - Publisher Copyright:
© Ben L. Kedia and Subhash C. Jain 2013. All rights reserved.
PY - 2013/1/1
Y1 - 2013/1/1
N2 - Innovation is fundamental to business success. Top managers responding to the 2010 McKinsey Global Survey confirm this: 84 percent say innovation is very or extremely important to their firm’s growth (Capozzi et al., 2010). Policy makers and economists agree – a firm, country or region cannot be globally competitive in every industry without a steady stream of innovation (e.g. Fagerberg, 1996).To this end, US businesses, entrepreneurs, venture capitalists, universities and government agencies invest in R & D, promote programs in STEM disciplines, and adopt management techniques intended to stimulate creativity. Innovation emerging from these investments is often championed – at least initially – by small start-up firms, and yet the successful commercialization of innovation depends in many cases on key complementary assets owned by larger firms. In a difficult economic climate, small cash-strapped firms are increasingly seeking to be acquired by large firms as an exit strategy to realize the value of their knowledge assets. The market for corporate control (mergers and acquisitions) is therefore a critical intermediary between societal investments in innovation and that innovation’s eventual success in the US and global economy.
AB - Innovation is fundamental to business success. Top managers responding to the 2010 McKinsey Global Survey confirm this: 84 percent say innovation is very or extremely important to their firm’s growth (Capozzi et al., 2010). Policy makers and economists agree – a firm, country or region cannot be globally competitive in every industry without a steady stream of innovation (e.g. Fagerberg, 1996).To this end, US businesses, entrepreneurs, venture capitalists, universities and government agencies invest in R & D, promote programs in STEM disciplines, and adopt management techniques intended to stimulate creativity. Innovation emerging from these investments is often championed – at least initially – by small start-up firms, and yet the successful commercialization of innovation depends in many cases on key complementary assets owned by larger firms. In a difficult economic climate, small cash-strapped firms are increasingly seeking to be acquired by large firms as an exit strategy to realize the value of their knowledge assets. The market for corporate control (mergers and acquisitions) is therefore a critical intermediary between societal investments in innovation and that innovation’s eventual success in the US and global economy.
UR - http://www.scopus.com/inward/record.url?scp=85039984150&partnerID=8YFLogxK
U2 - 10.4337/9781781005958.00012
DO - 10.4337/9781781005958.00012
M3 - Chapter
AN - SCOPUS:85039984150
SN - 9781781005941
SP - 101
EP - 125
BT - Restoring America’s Global Competitiveness through Innovation
PB - Edward Elgar Publishing Ltd.
ER -