How to kill Innovation at your company: Go public


Innovation may slow at public companies because IPOs trigger “brain drain” as employees cash in their holdings, the study suggests. By tracking about 13,000 of the inventors named in patent filings, Bernstein found that they were 18% more likely to leave after a company went public. Meanwhile, those who stayed behind produced inventions that were less valuable than before, receiving on average 48% fewer citations per patent.

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