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We study a situation in which an R&D department promotes the introduction of an innovation that results in costly re … implementing the so-called skunk works model of innovation where the R&D department is isolated from the rest of the organization …
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We present a model where the employees of a firm have to search for profitable business projects in a changing environment. Employees who have found a successful project in the past period are shown to be reluctant to search for new and better projects leading to corporate inertia. This reduces...
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