Discussion paper

DP15972 A Scientific Approach to Innovation Management: Theory and Evidence from Four Field Experiments

This paper studies the implications of an approach in which managers and entrepreneurs make decisions under uncertainty by formulating and testing theories such as scientists do. By combining the results of four Randomized Control Trials (RCTs) involving 754 start-ups and small-medium enterprises and 10,730 data points over time, we find that managers and entrepreneurs who adopt this approach terminate more projects, do not experiment with many new ideas, and perform better. We develop a model that explains these results.

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Citation

Camuffo, A, A Gambardella, D Messinese, E Novelli, E Paolucci and C Spina (eds) (2021), “DP15972 A Scientific Approach to Innovation Management: Theory and Evidence from Four Field Experiments”, CEPR Press Discussion Paper No. 15972. https://cepr.org/publications/dp15972