Going Public might kill INNOVATION

A new research suggests that IPOs can result in diminutive innovation, especially in technology firms. In general, post-IPO companies create products and inventions that are less ambitious and valuable than do firms that remain private. Innovation may slow at public companies because IPOs trigger “brain drain” as employees’ cash in their holdings. Increased scrutiny and accountability to shareholders may also affect the kind of research and development … Continue reading Going Public might kill INNOVATION