R&D performance volatility
Subtitle: a behavioral model
By: Francesca Gino, Gary Pisano
Contributors: Pisano, Gary P.; Harvard Business School. Division of Research
Edition: Rev.
Series: Working paper / Division of Research, Harvard Business School -- 05-015; Working paper (Harvard Business School. Division of Research) -- 05-015
Publisher: Division of Research, Harvard Business School
Published: 2004
Place of publication: Boston
Language: eng
Number of pages: 44
Other titles: R & D performance volatility; R and D performance volatility
Description: This paper explores the underlying causes of volatility in R&D performance over time at the firm level. R&D performance volatility has not been deeply examined in the innovation literature despite the fact that it plays a critical role in industries such as pharmaceuticals or the movie industry, where firms often undergo "hot" and "cold" streaks in R&D output. In this paper, we use a simulation model to explore such phenomenon, building on insights from behavioral theories of the firm: we argue that the swings in performance, while rooted in uncertainty, are exacerbated by the behavioral influences in how decision makers deal with risk and uncertainty in R&D.
Notes: "Rev. 12/04."

Revision of: R&D portfolio strategy and performance: a behavioral model.

Includes bibliographical references.