NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Young, Restless and Creative: Openness to Disruption and Creative Innovations

Daron Acemoglu, Ufuk Akcigit, Murat Alp Celik

NBER Working Paper No. 19894
Issued in February 2014
NBER Program(s):   EFG   PR

This paper argues that openness to new, unconventional and disruptive ideas has a first-order impact on creative innovations-innovations that break new ground in terms of knowledge creation. After presenting a motivating model focusing on the choice between incremental and radical innovation, and on how managers of different ages and human capital are sorted across different types of firms, we provide cross-country, firm-level and patent-level evidence consistent with this pattern. Our measures of creative innovations proxy for innovation quality (average number of citations per patent) and creativity (fraction of superstar innovators, the likelihood of a very high number of citations, and generality of patents). Our main proxy for openness to disruption is manager age. This variable is based on the idea that only companies or societies open to such disruption will allow the young to rise up within the hierarchy. Using this proxy at the country, firm or patent level, we present robust evidence that openness to disruption is associated with more creative innovations.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Information about Free Papers

You should expect a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w19894

Users who downloaded this paper also downloaded these:
Acemoglu, Mostagir, and Ozdaglar w19852 Managing Innovation in a Crowd
Hoxby w19816 The Economics of Online Postsecondary Education: MOOCs, Nonselective Education, and Highly Selective Education
Doepke and Tertilt w19888 Does Female Empowerment Promote Economic Development?
Acemoglu, GarcĂ­a-Jimeno, and Robinson w19813 State Capacity and Economic Development: A Network Approach
Acemoglu, Autor, Dorn, Hanson, and Price w19837 Return of the Solow Paradox? IT, Productivity, and Employment in U.S. Manufacturing
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us