Mitigating Diminishing Returns to R&D: The Role of Information Technology in Innovation

Increasingly, firms across many industries are grappling with the challenge of declining returns to research and development (R&D). In this study, we investigate if and how information technology (IT) can help firms deal with this problem. We theorize that IT systems can help firms to cope with the complexity and inefficiency in managing innovation when R&D investments scale. We explicate the mechanisms through which IT enables firms to...