"Despite the importance of innovation for the growth of firms, industries, and the national economy, the strategic tools available to effectively manage and create new technologies are often neglected by entrepreneurs and corporate managers. The Management of Innovation examines how firms can...

Motivated by markets for ``expertise,'' we study a bandit model where a principal chooses between a safe and risky arm. A strategic agent controls the risky arm and privately knows whether its type is high or low. Irrespective of type, the agent wants to maximize duration of experimentation with...