Organizing for Innovation in Large Firms: Resource Allocation Mechanisms for R&D in Large Firms [Archive.org URL]

This 23-page .pdf paper investigates how a firm can best be organized to facilitate innovation, specifically concentrating on the design of R&D resource allocation systems and the use of external technology sources. The study’s key findings are that increased use of external sources of technology results in increased efficiency but decreased effectiveness and that no strong relationship was found between the use of internal markets (authors metaphor) as a resource allocation system and firm performance.

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