Radical and Incremental Innovation: The Roles of Firms, Managers, and Innovators

A-Tier
Journal: American Economic Journal: Macroeconomics
Year: 2022
Volume: 14
Issue: 3
Pages: 199-249

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We investigate the determinants of radical ("creative") innovations that break new ground in knowledge creation. We develop a model focusing on the choice between incremental and radical innovation and on how managers of different ages and human capital are sorted across firms. Firm- and patent-level evidence reveals that firms that are more "open to disruption" are significantly more likely to engage in radical innovation and hire younger managers and inventors with a comparative advantage in radical innovation. However, once the effect of the sorting is factored in, the (causal) impact of manager age on creative innovations, though positive, is small.

Technical Details

RePEc Handle
repec:aea:aejmac:v:14:y:2022:i:3:p:199-249
Journal Field
Macro
Author Count
3
Added to Database
2026-01-24