Abstract
The literature on innovation and investment contains two contradictory strands. One emphasizes investment diversification as a form of risk reduction. The other emphasizes specialization as a way to exploit economies of scale and learning effects. The literature is surveyed and a simple model of optimal specialization is developed to clarify the issue. Comparative static results are presented.
| Original language | English |
|---|---|
| Pages (from-to) | 201-206 |
| Number of pages | 6 |
| Journal | R and D Management |
| Volume | 17 |
| Issue number | 3 |
| DOIs | |
| State | Published - Jul 1987 |
| Externally published | Yes |
ASJC Scopus subject areas
- Business and International Management
- General Business, Management and Accounting
- Strategy and Management
- Management of Technology and Innovation