Small firms tend to be more innovative than large firms in industries that are younger, less R&D intensive, less concentrated, less capital intensive, less advertising intensive, and more reliant on skilled labor.

Question

Quizplus · Accepted Answer

Small firms often have more flexibility and adaptability in younger, less established industries, allowing them to innovate more effectively in environments that require skilled labor but less capital and advertising investment.

Small Firms Tend to Be More Innovative Than Large Firms