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Does the “New Economy” Change the Frontiers of the LargeCorporation?
Published online by Cambridge University Press: 17 August 2016
Summary
This paper proposes a model of industrial innovation linked to financialliberalisation where agents are characterised by heterogeneous innovativeabilities. Individual researchers may either be employed by a large firm andwork together on the firm’s innovative project, or they may alternativelyset up an individual firm in order to commercialise their own innovation.The large firm’s hiring decisions and the individual researcher’s decisionto set up his own firm depends on the researcher’s innovative ability and onthe financial conditions. Financial liberalisation leading to a lower costof setting up a small firm will affect the size of the large firm andincrease the number of small technology firms. A drop in the cost ofstarting a small firm may increase income inequality.
Résumé
Cet article propose un modèle d’innovation industrielle liée à lalibéralisation financière où les agents sont charactérisés par des capacitésd’innovation hétérogènes. Les chercheurs individuels peuvent soit êtreemployés par une grande entreprise et travailler ensemble sur un projetd’innovation de l’entreprise, soit créer une entreprise individuelle afin decommercialiser leur propre innovation. Les décisions d’embauche de la grandeentreprise et la décision du chercheur individuel de créer sa propreentreprise dépendent de la capacité d’innovation du chercheur et desconditions financières. La libéralisation financière qui diminue le coût dela création d’une petite entreprise affecte la taille de la grandeentreprise et accroît le nombre de petites firmes technologiques. Une baissedu coût de création d’entreprise peut augmenter l’inégalité des revenus.
Keywords
Information
- Type
- III. Finance
- Information
- Copyright
- Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 2002
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