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Find the right innovation model

Innovation is a much-used buzzword these days, but when it comes to creating and implementing a new idea, many companies miss the mark--plans backfire, consumer preferences shift, or tried-and-true practices fail to work in a new context. So is innovation just a low-odds crapshoot?

In The Architecture of Innovation, Harvard Business School professor Josh Lerner--one of the foremost experts on how innovation works--says innovation can be understood and managed. The key to success? Incentives.

Fortunately, new research has shed...

The seventeenth volume of the National Bureau of Economic Research's Innovation Policy and the Economy provides an accessible forum for bringing the work of leading academic researchers to an audience of policymakers and those interested in the interaction between public policy and innovation. In the first chapter, Joel Waldfogel discusses how reduced costs of production have resulted in a "Golden Age of Television," arguing that this development has gone underappreciated. The second chapter, by Marc Rysman and Scott Schuh, discusses the prospects for innovation in payment systems,...