Book | March 6, 2023

Learning by Building: Complementary Assets and the Migration of Capabilities in U.S. Innovative Firms

As policymakers in the United States debate how the economy can regain its vitality following the Great Recession, many see innovation as the key to prosperity. The United States excels in product, service, and business model innovation, particularly when this innovation leverages technological advances. The United States is also one of the leading countries for venture capital financing, which supports the creation of many innovative start-up companies every year. Although innovation by young firms is common today, it represents a relatively new economic model. This shift from large firms that moved ideas to products within the boundaries of the firm to a model of smaller, entrepreneurial firms working in conjunction with multiple external innovators and partners to generate new inventions and technologies has become a vital source of innovation and economic growth for the country.