Innovation Overload?

33 Pages Posted: 20 Aug 2018 Last revised: 11 Jan 2020

See all articles by Byoung-Hyoun Hwang

Byoung-Hyoun Hwang

Cornell University - Dyson School of Applied Economics and Management; Korea University - Department of Finance

Hugh Hoikwang Kim

University of South Carolina, Darla Moore School of Business

Kai Wu

Central University of Finance and Economics (CUFE) - School of Finance

Date Written: January 9, 2020

Abstract

We conjecture that some individuals are becoming increasingly overwhelmed by the myriad of new ideas and products proposed to them each year. As a result, even minor obstacles to understanding an innovation causes such innovation to not be adopted. To test this idea, we turn to ideas proposed in scientific journal articles. Consistent with our conjecture, we find that how difficult to read an article is strongly negatively predicts its subsequent number of citations. This predictability has strengthened as journals increased the number of articles published in a given year. Our evidence extends to patent descriptions and patent forward citations.

Keywords: Innovation Diffusion, Bounded Rationality

JEL Classification: A10, M30

Suggested Citation

Hwang, Byoung-Hyoun and Kim, Hugh Hoikwang and Wu, Kai, Innovation Overload? (January 9, 2020). Available at SSRN: https://ssrn.com/abstract=3228084 or http://dx.doi.org/10.2139/ssrn.3228084

Byoung-Hyoun Hwang (Contact Author)

Cornell University - Dyson School of Applied Economics and Management ( email )

Ithaca, NY
United States

HOME PAGE: http://www.bhwang.com

Korea University - Department of Finance

Seoul, 136-701
United States

Hugh Hoikwang Kim

University of South Carolina, Darla Moore School of Business ( email )

1014 Greene Street
Columbia, SC 29208
United States

Kai Wu

Central University of Finance and Economics (CUFE) - School of Finance ( email )

Beijing
China

Register to save articles to
your library

Register

Paper statistics

Downloads
22
Abstract Views
440
PlumX Metrics