Events

Alpha Strategies: Sustained Advantage in Entrepreneurial and Established Firms

All innovation begins with some kind of disequilibrium, and may lead to supra-normal profits for the pioneering enterprise. However, all disequilibrium eventually fades. This talk links what we know about strategy, finance, and innovation into a framework for understanding sustained competitive advantage for innovating organizations, whether new entrants or incumbents. I also examine the evidence for the magnitude and duration of sustained profitability above the cost of capital in established public companies, and consider the extent to which such profits are the result of innovation.