Jump to ContentJump to Main Navigation
Production in the Innovation Economy$
Users without a subscription are not able to see the full content.

Richard M. Locke and Rachel L. Wellhausen

Print publication date: 2014

Print ISBN-13: 9780262019927

Published to MIT Press Scholarship Online: May 2014

DOI: 10.7551/mitpress/9780262019927.001.0001

Show Summary Details
Page of

PRINTED FROM MIT PRESS SCHOLARSHIP ONLINE (www.mitpress.universitypressscholarship.com). (c) Copyright The MIT Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in MITSO for personal use.date: 05 March 2021

Learning by Building: Complementary Assets and the Migration of Capabilities in U.S. Innovative Firms

Learning by Building: Complementary Assets and the Migration of Capabilities in U.S. Innovative Firms

Chapter:
(p.81) 4 Learning by Building: Complementary Assets and the Migration of Capabilities in U.S. Innovative Firms
Source:
Production in the Innovation Economy
Author(s):

Elisabeth B. Reynolds

Hiram M. Samel

Joyce Lawrence

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262019927.003.0004

Given that the US excels in innovation and venture capital financing, how do young firms scale-up their operations and why do so many manufacturing firms have trouble growing? The authors look at high-tech spinoff companies from MIT in order to see the limitations even these privileged companies face. They identify a “learning by building” process through which firms use prototype manufacturing to develop commercial products. But, even these MIT spinoffs face an “inflection band” in which venture capital is insufficient to scale-up and other funding sources can be scarce, leading firms to move offshore. The authors suggest a public interest in finding ways to help firms scale production in the United States.

Keywords:   Scale-up, Innovation, Venture capital, Learning by building, Inflection band, Offshoring

MIT Press Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.