Lippman, Steven A.; McCardle, Kevin F. - In: Management Science 33 (1987) 8, pp. 1058-1064
A common myth/conception, based upon the notion of increasing returns to scale in R&D activity, is that large firms account for a disproportionate share of innovations. In this paper we consider three types of informational returns to scale (cheaper, faster, and better) and examine the impact of...