"When Big Firms Are Most Likely to Innovate" #readingToday

Firms may be most motivated to go after radical new technologies when they are lagging (slightly) behind expectations, but they are most likely to successfully develop such technologies when they are technology leaders. Thus, firms that eagerly pursue path-breaking new technologies when their performance falls below expectations may be over-invested in looking for the next big thing, while firms that choose to play it safe because their performance far exceeds expectations may be under-invested in trying new things.