News

Opening day of the official baseball season is only days away, but some die hard fans just can't wait to hear the crack of the bat and cheer their favorite teams at spring training. Dean Emeritus Stuart Greenbaum and his wife Elaine report from their annual pilgrimage to Florida.
CATEGORY: News


The bad news is: “the money companies spend on R&D is producing fewer and fewer results,” according to Anne Marie Knott, Olin strategy professor, and author of the just-published book How Innovation Really Works.

Knott_chosenIn an article published on the Harvard Business Review website this week, Knott says, “My research shows the returns to companies’ R&D spending have declined 65% over the past three decades.” This decline begs the question and title of Knott’s article, “Is R&D Getting Harder, or Are Companies Just Getting Worse At It?”

Her research finds that companies are getting worse at R&D, but there’s a silver lining:

“It appears the decline in companies’ (and the economy’s) ability to drive growth from R&D stems from the fact that companies have gotten worse at innovation, rather than because innovation has gotten harder. This is great news, because the problem of companies getting worse is fixable, whereas the problem of innovation getting harder isn’t. The challenge, of course, is knowing what to fix and how to fix it.”

Link to Harvard Business Review


“Right now, I think the increase in CEO pay is more stock market driven than profit driven,” said Radhakrishnan Gopalan, Olin associate professor in finance told NBC News in response to a new study from the Wall St. Journal on CEO compensation.

“The stock market is rising in anticipation of future growth in profits,” Gopalan said. “The stock awards, which are basically what’s driving the growth in CEO pay, are mostly a motivator for future performance.”

This kind of forward-looking optimism is typical of a stock-heavy incentive structure, but some warn this can be an imperfect way of measuring performance, since bull market gains aren’t matched proportionately with bear market losses.

Unfortunately, they never retrench,” Gopalan said. “That link is weaker on the down side.”

Link to NBC story here.

Watch video about related research on CEO compensation from Prof. Gopalan and Prof. Todd Milbourn that won the Olin Award in 2016.







When Marketplace asked Patrick Rishe about the potential of advertising brand-fatigue among NBA sports fans, Olin’s director of the sports business program, said, “No.”

Even with the NBA Developmental League re-branding next season as the “G” League after Gatorade bought the naming rights?

Even after the NBA lets teams sell advertising space on the upper-left corner of player’s jerseys next season?

“Rishe… doesn’t think people are going to tire of branding anytime soon,”according to the Marketplace story. “I am not concerned about the over saturation,” he said. “And I think though some purists may say that they are, let’s see how they feel two or three years from now. I doubt they’ll raise a fuss then. The sports consumer will adapt.”

Link to Marketplace story.

CATEGORY: News