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Under what conditions is concentration as against diversification the better strategy in allocating research effort up to a given capacity limit? We compare the short and the long run and various types of interdependence. This is a theoretical analysis based on a negative exponential relationship between the probability of success and the amount of research input.

jahrbücher für nationalökonomie und statistik

Diversification Versus Concentration: A Note on the Allocation of Effort Among Risky Research Projects / Diversifikation oder Konzentration in der Forschung