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| Author: | Athey, S. Schmutzler, A. |
| Title: | Product and process flexibility in an innovative environment |
| Journal: | RAND Journal of Economics
1995 : WINTER, VOL. 26:4, p. 557-574 |
| Index terms: | ECONOMICS FLEXIBILITY INNOVATION |
| Language: | eng |
| Abstract: | This article studies several attributes of a firm's long-run decisions about organizational structure, attributes that affect the firm's short-run innovative activity. The authors focus on flexibility, which lowers the future costs of implementing innovations, and research capabilities, which improve the future opportunities for innovation. They consider two dimensions of innovation: demand-enhancing and cost-reducing. These two types of innovation are complementary in terms of increasing the firm's net revenue in the short run. |
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