Found 3 article(s) for author 'Andy Wu'

Commuting and Innovation: Are Closer Inventors More Productive?

Commuting and Innovation: Are Closer Inventors More Productive? Andy Wu, November 15, 2019, Paper, “Commuting is costly for employees, but is it costly for employers in terms of lost productivity? We examine the direction and size of the causal effects of commuting distance on inventor productivity. We construct a novel panel of U.S. inventors with precisely measured workplace-home distances and a direct measure of productivity via patents. Our identification strategy relies upon within-city firm office relocation events as exogenous shocks to commuting distance. We find a significant negative causal effect from commuting distance on inventor productivity: every ten kilometer increase in distance is associated with a 5% decrease in patent counts per inventor-firm pair per year, and an even greater 7% decrease in patent quality. This effect is economically significant for firms, costing the latter more than $4,000 per year with conservative estimates of patent values.Link

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Organizing Knowledge Production Teams within Firms for Innovation

Organizing Knowledge Production Teams within Firms for Innovation. Andy Wu, 2019, Paper, “How should firms organize their pool of inventive human capital for firm-level innovation? While access to diverse knowledge may aid knowledge recombination, which can facilitate innovation, prior literature has focused primarily on one way of achieving that: diversity of inventor-held knowledge within a given knowledge production team (“within-team knowledge diversity”). We introduce the concept of “across-team knowledge diversity,” which captures the distribution of inventor knowledge diversity across production teams, an overlooked dimension of a firm’s internal organization design. We study two contrasting forms of organizing the firm-level knowledge diversity environment in which a firm’s inventors are situated: “diffuse” (high within-team diversity and low across-team diversity) versus “concentrated” (low within-team diversity and high across-team diversity). Using panel data on new biotechnology ventures founded over a 21-year period and followed annually from inception, we find that concentrated structures are associated with higher firm-level innovation quality, and with more equal contributions from their teams (and the opposite for diffuse structures). Our empirical tests of the operative mechanisms point to the importance of within-team coordination costs in diffuse structures and across-team knowledge flows in concentrated knowledge structures. We end with a discussion of implications for future research on organizing for innovation.Link

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Extending the role of headquarters beyond the firm boundary: entrepreneurial alliance innovation

Extending the role of headquarters beyond the firm boundary: entrepreneurial alliance innovation. Andy Wu, August 14, 2019, Paper, “Prior research on corporate headquarters (CHQ) characteristics identifies the impact of CHQ location and composition on the innovation outcomes of internal subsidiaries. However, given that external strategic alliances with high-tech entrepreneurial firms represent a key source of innovation for the corporation, corporations must also consider how their choices of CHQ location and composition affect the innovation outcomes of these partners. In a study of 36 incumbent pharmaceutical corporations in 377 strategic alliances with 143 VC-backed biotechnology startups, we leverage detailed hand-collected data on CHQ locations and functions to estimate the effect of the CHQ on the innovation performance of the corporations’ entrepreneurial alliance partners. We find that a 1000-km decrease in CHQ–partner distance leads to an increase of 28 forward citations for the alliance partner, i.e., a 1% decrease in the distance is associated with a 1.7% increase in innovation performance. We find that the co-located presence of the corporation’s R&D function at the CHQ attenuates the benefit of CHQ–partner proximity, particularly for alliances structured for horizontal collaboration at the same part of the value chain. This study contributes to the literatures on both CHQ design and technology alliances.Link

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