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The Innovation Boundary: A Specific Model and Some Empirical Results

Dennis P. Slevin
Administrative Science Quarterly
Vol. 16, No. 4 (Dec., 1971), pp. 515-532
DOI: 10.2307/2391770
Stable URL: http://www.jstor.org/stable/2391770
Page Count: 18
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
The Innovation Boundary: A Specific Model and Some Empirical Results
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Abstract

A mathematical model is developed for examining the conditions under which individuals innovate or try new things. The model has four main variables: current success level, target success level, costs of trying new things, and rewards for successful performance. These variables are related to each other to yield an innovation boundary. It is predicted that on one side of the boundary individuals will choose to try new things, while on the other side they will not innovate. The model is tested in a laboratory experiment using MBA student subjects and it is found that an innovation boundary does exist and that individuals behave as predicted by their position relative to the boundary.

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