The circulation of ideas in firms and markets
By: Thomas F. Hellmann, Enrico C. Perotti
Contributors: Perotti, Enrico Camillo; National Bureau of Economic Research
Series: NBER working paper series -- working paper 16943; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16943.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "Novel early stage ideas face uncertainty on the expertise needed to elaborate them, which creates a need to circulate them widely to find a match.  Yet as information is not excludable, shared ideas may be stolen, reducing incentives to innovate.  Still, in idea-rich environments inventors may share them without contractual protection.  Idea density is enhanced by firms ensuring rewards to inventors, while their legal boundaries limit idea leakage.  As firms limit idea circulation, the innovative environment involves a symbiotic interaction: firms incubate ideas and allow employees leave if they cannot find an internal fit; markets allow for wide ideas circulation of ideas until matched and completed; under certain circumstances ideas may be even developed in both firms and markets"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/23/2011.

Includes bibliographical references.

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Mode of access: World Wide Web.