Learning by Building: Complementary Assets and the Migration of Capabilities in US Innovative Firms

Reynolds, Elisabeth B., Samel, Hiram M. and Lawrence, Joyce (2014) Learning by Building: Complementary Assets and the Migration of Capabilities in US Innovative Firms. In: Locke, Richard M. and Wellhausen, Rachel L., (eds.) Production in the Innovation Economy. MIT Press, pp. 81-108.

Abstract

Given that the US excels in innovation and venture capital financing, how do young firms scale-up their operations and why do so many manufacturing firms have trouble growing? The authors look at high-tech spinoff companies from MIT in order to see the limitations even these privileged companies face. They identify a “learning by building” process through which firms use prototype manufacturing to develop commercial products. But, even these MIT spinoffs face an “inflection band” in which venture capital is insufficient to scale-up and other funding sources can be scarce, leading firms to move offshore. The authors suggest a public interest in finding ways to help firms scale production in the United States.

Item Type: Book Section
Keywords: venture capital
Subject(s): Operations management
Date Deposited: 10 Nov 2015 17:25
Last Modified: 18 Dec 2015 15:51
Funders: N/A
URI: http://eureka.sbs.ox.ac.uk/id/eprint/5807

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