This week, Arnaud Dyèvre (@ArnaudDyevre) and I follow up on a previous podcast, where we documented a puzzle: larger firms conduct R&D at the same rate as smaller firms, despite getting fewer (and more incremental) innovations per R&D dollar. Why wouldn’t firms decelerate their research spending as the return on R&D apparently declines? In this follow-up podcast, we look at one explanation: firms of different sizes face different incentives when it comes to innovation. This podcast is an audio read through of the (initial version of the) article "Big firms have different incentives", originally published on New Things Under the Sun.