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Abstract

In any pool of ideas that is developed in a multistage process, it is often the case that only a small fraction of top ideas are exceptional. This study formulates a model of multistage development of idea pools, and examines the impact of the “structure” of idea pools and of learning across stages on the extent to which the top ideas in the pool are exceptional. Our key descriptive results demonstrate that the dispersion of ideas in the pool (defined in terms of the dissimilarity between ideas) has a positive impact on the value derived from the top ideas, especially so when learning across stages is limited. Subsequently, the study examines the normative question of optimal design of idea pools, and managerial rules‐of‐thumb are derived for the optimal choice of the number and dispersion of ideas within the pool.

Keywords

fuzzy front‐end innovation product development

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Making The Best Idea Better: The Role of Idea Pool Structure

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