Reference : Heterogeneous Innovation over the Business Cycle
Scientific journals : Article
Business & economic sciences : Strategy & innovation
Entrepreneurship and Innovation / Audit
Heterogeneous Innovation over the Business Cycle
Manso, Gustavo mailto []
Balsmeier, Benjamin mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Economics and Management (DEM) >]
Fleming, Lee mailto []
Review of Economics and Statistics
MIT Press
Yes (verified by ORBilu)
[en] Innovation ; Business Cycles ; Patents
[en] Schumpeter (1939) claims that recessions are periods of “creative destruction,”
concentrating innovation that is useful for the long-term growth of the economy. However
previous research finds that standard measures of firms’ innovation, such as R&D expenditures
or raw patent counts, concentrate in booms. We argue that these measures do not capture shifts
in firms’ innovative search strategies. We contemplate firms’ choice between exploration vs.
exploitation over the business cycle and find evidence with more nuanced measures of patent
characteristics that firms shift towards exploration during contractions and exploitation during
expansions, with a stronger effect for firms in more cyclical industries.
Researchers ; Professionals ; Students

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