Activity Overinvestment: The Case of R&D

The literature on corporate diversification has often argued for and established the case that companies often overdiversify in a product market sense – i.e. enter into unrelated product markets where they may not fully cover their cost of capital. Yet, even without engaging in unrelated diversification, managers need to make resource allocation decisions to a variety of activities that a company conducts to consummate its business. In this article we focus on Research and Development (R&D) activity and we discuss the effects that the uncertainty, boundary ambiguity, feedback latency, R&D lumpiness and legitimacy that characterize technological contexts can have in making overinvestment in R&D likely. Specifically, in this article we a) draw attention to the construct of activity overinvestment, and specifically R&D overinvestment, b) use the received literature to argue that there exists a prima facie case for examining this construct and its antecedents in order to evaluate the extent and implications of R&D overinvestment, and c) make the more general case that the resource allocation literature needs to study the issue of activity overinvestment systematically

Introduction:How European Players Captured the Computer and Created Scenes

Playfulness was at the heart of how European players appropriated microcomputers in the last quarter of the twentieth century. Although gaming has been important for computer development, that is not the subject of Hacking Europe. Our book’s main focus is the playfulness of hacker culture. The essays argue that no matter how detailed or unfinished the design projecting the use of computers, users playfully assigned their own meanings to the machines in unexpected ways. Chopping games in Warsaw, hacking software in Athens, creating chaos in Hamburg, producing demos in Turku, or partying with computing in Zagreb and Amsterdam—wherever computers came with specific meanings that designers had attached to them—local communities throughout Europe found them technically fascinating, culturally inspiring, and politically motivating machines. They began tinkering with the new technology with boundless enthusiasm and helped revolutionize the use and meaning of computers by incorporating them into people’s daily lives. As tinkerers, hackers appropriated the machine and created a new culture around it. Perhaps best known and most visible were the hacker cultures that toyed with the meaning of ownership in the domain of information technology. In several parts of Europe, hackers created a counterculture akin to the squatter movement that challenged individual ownership, demanded equal access, and celebrated shared use of the new technological potential. The German Chaos Computer Club best embodied the European version of the political fusion of the counterculture movement and the love of technology. Linguistically, in Dutch, the slang word kraken, the term used for both hacking and squatting, pointedly expressed such creative fusion that is the subject of this book