Innovation and Corporate Conservatism

摘要: In this paper, we study …rms’incentives to promote innovation. We analyze a situation in which an employee …rm can invest discovering new ideas. An innovative has decide whether disclose his idea within the …rm, maintain status-quo by not implementing it, or form spin-out …rm. framework intellectual property rights are perfect, contract renegotiation may ensue following internal disclosure. show that …rms have incentives discourage both formation (fearing increase market competition generated …rm) and disclosure reshu­ ing of …rms’rents caused intra-…rm renegotiation). consider several policies, such as innovation bonuses stock-based compensation, while former one always implements bargaining e¢ ciency, latter mitigates, but does entirely deter, …rm’s