emphasis on short term results is the reason for
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The author of the paper "Last Day at School" will begin with the statement that he cannot forget his last day at school as it is still fresh in his mind like it happened yesterday. The author states that he passed his high school days in that school very joyfully…
One trend that has contributed to short-termism and lower innovativeness is the increased prevalence of outside CEOs. From 1970 to 2004, the percentage of CEOs hired from outside the firm increased from 12% to 39%.
One trend that has contributed to short-termism and lower innovativeness is the increased prevalence of outside CEOs. From 1970 to 2004, the percentage of CEOs hired from outside the firm increased from 12% to 39%.While the identity of the interviewed firms is confidential, it is easy to find similar examples from publicly available accounts in other firms. Consider GE during Jack Welch’s tenure, Trimble Navigation under Steve Berglund, or IBM under Lou Gerstner. In all three cases, our analysis shows, there was a decline in R&D investment followed by a decline in the returns on that investment (RQ).
One trend that has contributed to short-termism and lower innovativeness is the increased prevalence of outside CEOs. From 1970 to 2004, the percentage of CEOs hired from outside the firm increased from 12% to 39%.While the identity of the interviewed firms is confidential, it is easy to find similar examples from publicly available accounts in other firms. Consider GE during Jack Welch’s tenure, Trimble Navigation under Steve Berglund, or IBM under Lou Gerstner. In all three cases, our analysis shows, there was a decline in R&D investment followed by a decline in the returns on that investment (RQ).We also know some details about how R&D strategy changed in these cases: GE shifted to strategy of divesting businesses in which they were neither number one or two in their markets (televisions, semi-conductors, and aerospace) and expanding into businesses that didn’t rely on R&D (NBC, GE capital); Trimble shifted from a strategy of developing its own technology to one of acquiring other firms for their technology; and IBM shifted to a strategy of reducing R&D while patenting the stock of existing innovation (increasing patents almost 500%). The shift in patenting policy was not to protect innovations, but rather to license them and/or to use them as chips to gain access to other firms’ technology.