The Importance of Large Companies for the Rise of Innovation in the Continent

Paulo Roberto Feldmann
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Paulo Roberto Feldmann: University of São Paulo

Chapter Chapter 7 in Management in Latin America, 2014, pp 57-63 from Springer

Abstract: Abstract More than 30 years ago, Galbraith (1978) pointed to the fact that the large companies were always increasing their supremacy and power over the economy because only they have the conditions to sustain the expenses demanded by innovation.“The small company does not have the conditions to sustain the expenses demanded by innovation” said Galbraith in “The New Industrial State.” In his ironic and didactic way of analyzing the large problems of the economy, Galbraith would say that the enemy of the market system was not the ideology but the engineer, as he was increasingly working in favor of the large companies and generating innovations in processes and products that contributed increasingly more to increase the difference between the large and the small companies. In all of his books, Galbraith emphasized the advantages of a large organization: “The large organization can tolerate the uncertainty of the market, which a smaller company cannot do…All, with the exception of the pathologically romantic, now recognize that this is not the era of the small ones.”

Keywords: Cash Flow; Total Expenditure; Large Company; Large Organization; Small Company (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-319-04750-8_7

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DOI: 10.1007/978-3-319-04750-8_7

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