"Global Innovation 1000-Money Isn't Everything."
The report by Booz Allen Hamilton Consulting claims that "There is no direct relationship between spending and significant measures of corporate success such as growth, profitability, and sharehold return. However, the pace of corporate R&D spending continues to accelerate, as many executives
Continue to believe that enhanced innovation is required to fuel their future growth.
The report provides evidence of the .

Question

Quizplus · Accepted Answer

The report by Booz Allen Hamilton Consulting contradicts the traditional neoclassical growth model which claims that increased R&D spending leads to increased profits. Instead, the report suggests that there is no direct relationship between spending and significant measures of corporate success such as growth, profitability, and shareholder return, but many executives continue to believe that innovation is required for future growth, thus linking profits to innovation in a conflicting new growth model.