Division Of Innovative Labor And The Organization Of Corporate Science And Invention

We study how firms organize their research and development activities across business units and the tradeoff in partitioning R&D into “R” and “D.” Theoretically, combining research and development in a single unit enhances potential synergies between the two activities. On the other hand, separating them allows for greater specialization, better governance and more focused managerial attention. To analyze this tradeoff, we develop new systematic...