INSITE Innovation Seminar

Claudio Panico, Bocconi University, Human Capital & Innovation, presents. By combining the literature on rent appropriation and exploitation/exploration with the literature on contracting, Panico sets up a simple model to study the relationship between a firm and a knowledgeable individual. He shows how a firm's technological capabilities affect the allocation of the individual's time between exploitative and explorative activities, and the distribution of the value created.