Small business may be less innovative than you think
Posted 3.9.15Recent data produced by the US Patent and Trademark Office and the National Science Foundation suggest that small businesses are weaker at innovation than many observers have historically argued.
In this Small Business Trends article titled, "Small business may be less innovative than you think," Scott Shane, PhD, A. Malachi Mixon III Professor of Entrepreneurial Studies and professor of economics at Weatherhead School of Management, analyzes data produced by the United States Patent and Trademark Office and the National Science Foundation to test the argument made by many observers that small businesses are more innovative than large businesses.
Many observers have argued that small businesses are more innovative than large companies because they are more nimble and because they offer greater incentives for people to take risks and be creative. The U.S. Small Business Administration (SBA), for example, points out companies with fewer than 500 employees produce more patented inventions per capita than companies with 500 or more employees.
But recent data produced by the United States Patent and Trademark Office (USPTO) and the National Science Foundation (NSF) suggest that small businesses are weaker at innovation than many observers have historically argued.
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