These days the second Schumpeter is out of fashion: people assume that little start-ups are creative and big firms are slow and bureaucratic. But that is a gross oversimplification, says Michael Mandel of the Progressive Policy Institute, a think-tank. In a new report on “scale and innovation”, he concludes that today’s economy favours big companies over small ones. Big is back, as this newspaper has argued. And big is clever, for three reasons.”
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Good roundup from The Economist on why big companies are actually much better at innovation than people give them credit for: 1) Growth is driven by big ecosystems, 2) globalization makes size a bigger factor, and 3) innovation is expensive (and big companies have more money than little ones).
Schumpeter: Big and clever | The Economist
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