Grant McCracken: Are Big Companies Better At Innovation Than Small Ones?
In the era of the start-up when seemingly the small business reigns, is it actually the larger brands (and their budgets) that are driving imaginative creation?
Resolved: that big companies are better at innovation than small ones
Schumpeter in the Economist reports new research on innovation and the corporation, specifically the work of Michael Mandel of the Progressive Policy Institute
Mandel proposed three explanations for the big corporation as an engine of innovation:
1. The best path to economic growth is the creation of a new product category or operating system. Only big companies, like Apple and Google, can create these. (Plus, small companies may or may not be able to live in the shade of these giant oaks.)