Innovation drives long-term value creation; however, do public markets support or constrain it? On one hand, market pressures can discourage the capital allocation required to fund breakthrough R&D; on the other, public markets offer the necessary scale and liquidity that companies cannot get elsewhere. This project will examine whether going public hinders or advances innovation, and what companies and investors can do to ensure innovation continues to thrive at publicly traded companies.
Objectives:
- Assess how the innovation landscape across public and private markets has evolved since the publication of Funding the Future: Investing in Long-Horizon Innovation.
- Analyze whether companies with higher R&D intensity outperform and outlast their peers in the long run.
- Identify key frictions and barriers in the public markets, and under what conditions innovation can thrive.