Remove Cost of Capital Remove Innovation Remove Marketing Remove Productivity
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Entrepreneurship Suffers When Well-Paid Jobs Are Plentiful

The Horizons Tracker

A few years ago I wrote about innovation and entrepreneurship in Norway and Qatar. The author believes that while lower costs of capital would certainly help raise the entrepreneurship rate, it would be most beneficial to entrepreneurs with lower skills. Positive or negative?

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4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

A recent McKinsey report found that while 84% of corporate executives think innovation is key to achieving growth objectives, only 6% are satisfied with the innovation performance of their firm. Even if executives try to prioritize it, innovation often gets crowded out by more “urgent” short-term pressures.

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The Case for Investing More in People

Harvard Business Review

Productivity isn’t everything, but in the long run it is almost everything,” wrote Paul Krugman more than 20 years ago. Productivity in most developed economies has been anemic. During much of this time, it has been shareholders, not workers, who have reaped the benefits of higher productivity.

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What U.S. CEOs Should Do with the Money from Corporate Tax Cuts

Harvard Business Review

The cost of capital is at historic lows, averaging below 6% for most large U.S. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders. For example, well-managed consolidators such as Dell Technologies are doing well in this market.

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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

of the world market, and the second-largest beef producer and consumer. These values can be estimated credibly and cost-effectively, and we set about applying them to the Brazilian beef sector. These and other benefits translate into better cost management, agricultural innovation, and increased land productivity and quality.

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Shutting Down Stores Doesn’t Have to Be Bad for Business

Harvard Business Review

In retailing, most products, stores, business units, and even firms go through a life cycle of birth, midlife, and death. Over time, retailers have identified and adopted many innovative ideas to manage these complex tasks. They would be better off retaining the product to sell in another market or just donating it to a charity.

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What’s Driving Superstar Companies, Industries, and Cities

Harvard Business Review

To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)