Eric Ries talks in an interview with Ezra Klein about how there are studies that show that when a company goes public, it usually lowers their R&D spending afterwards. Is this is accurate representation of the academic literature?

  • 4
    This appears to be ignoring the fact that companies that are just being founded will often pour the vast majority of their resources into R&D, in order to develop their first product. Once they are established well enough to "go public" they are usually past this point. Feb 14 at 18:11
  • @DanielRHicks : Eric Ries does point to a study that looks for firms of similar size, age etc to control for factors like that. Infortunately, the part of the interview isn't easily quoted.
    – Christian
    Feb 14 at 19:29
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    Not sure what the overall consensus is, but here's a study supporting the opposite: federalreserve.gov/econres/feds/files/2018068pap.pdf
    – Brian Z
    Feb 14 at 21:13

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