The literature has discussed the introduction of incentive structures as a means achieving balance between organizational exploration and exploitation. This study posits that this is not reasonable approach to such balance. I used micro-economic model where explorative exploitative activities are modeled in accordance with definitions March (1991). shows personal cost employee performing was cr...

An interesting problem in the economics of innovation and strategic management of labs is to explain the drivers of breakthroughs and paradigm shifts in science. This study confronts the issue by analysing a main case study: the technological determinant of the discovery of quasi-periodic materials that has generated a scientific paradigm shift in crystallography. Unlike user-friendly radical i...

1. OPEN INNOVATION Open innovation was defined by Henry Ches-broug, a professor at Harvard Business School, in 2003. He believes that in an open innovation model, companies should use internal and external strength to develop new products and to commercialize them (Chesbrough, 2005). Figure 1 shows the open innovation model. In the closed innovation model, the steps from new products developmen...

New ventures that commercialize radical technologies tend to cluster in time. Funding for new ventures also ebbs and flows, often synchronous with significant innovations. We suggest that financial market activity is not purely a response to novel technologies but rather, financial markets drive innovation bubbles. We show that financing risk is inherent to the funding of new ventures, but vari...