Continuing with rehashing interesting innovation research check out these conclusions: (I quote directly):
- Total market returns to an innovation project are $643 million, substantially greater than $49, the returns to an average event in the innovation project.
- Of three sets of activities of innovation (setup, development, and market), returns to the development activities are consistently the highest across and within categories.
- Returns to negative events are higher in absolute value than those to positive events.
- Returns are consistently higher for small firms than for large firms and for those that focus on a few rather than many technologies.
- Returns to the announcing firm are substantially greater than those to competitors across all stages
- Number of prior announcements or time since the last announcement has no effect on the market returns to innovation.
- Returns to the first announcement of an innovation project are not different from returns to later announcements. Similarly results for older technologies and projects are not different from those for newer ones.
Download the full paper here