Modularity, Higher-Order Recombination, and New Venture Success

In this paper, we propose Vocab-Expander at https://vocab-expander.com, an online tool that enables end-users (e.g., technology scouts) to create and expand a vocabulary of their domain of interest. It utilizes an ensemble of state-of-the-art word embedding techniques based on web text and ConceptNet, a common-sense knowledge base, to suggest related terms for already given terms. The system has an easy-to-use interface that allows users to quickly confirm or reject term sugg...

Much information available to applied researchers is contained within written language or spoken text. Deep language models such as BERT have achieved unprecedented success in many applications of computational linguistics. However, much less is known about how these models can be used to analyze existing text. We propose a novel method that combines transformer models with network analysis to form a self-referential representation of language use within a corpus of interest....

Breakthrough discoveries and inventions involve unexpected combinations of contents including problems, methods, and natural entities, and also diverse contexts such as journals, subfields, and conferences. Drawing on data from tens of millions of research papers, patents, and researchers, we construct models that predict next year's content and context combinations with an AUC of 95% based on embeddings constructed from high-dimensional stochastic block models, where the imp...

Understanding the relationship between emerging technology and research and development has long been of interest to companies, policy makers and researchers. In this paper new sources of data and tools are combined with a novel technique to construct a model linking a defined set of emerging technologies with the global leading R&D spending companies. The result is a new map of this landscape. This map reveals the proximity of technologies and companies in the knowledge embe...

Scale-up is the process of growing a venture in size. The paper identifies modularity and speed as keys to successful scale-up. On that basis four types of scale-up are identified: Smart, dumb, forced, and fumbled. Smart scale-up combines modularity and speed. Dumb scale-up is bespoke and slow, and very common. The paper presents examples of each type of scale-up, explaining why they were successful or not. Whether you are a small startup or Elon Musk trying to grow Tesla and...

The labor market is a complex ecosystem comprising diverse, interconnected entities, such as industries, occupations, skills, and firms. Due to the lack of a systematic method to map these heterogeneous entities together, each entity has been analyzed in isolation or only through pairwise relationships, inhibiting comprehensive understanding of the whole ecosystem. Here, we introduce $\textit{Labor Space}$, a vector-space embedding of heterogeneous labor market entities, deri...

Innovation or the creation and diffusion of new material, social and cultural things in society has been widely studied in sociology and across the social sciences, with investigations sufficiently diverse and dispersed to make them unnavigable. This complexity results from innovation's importance for society, but also the fundamental paradox underlying innovation science: When innovation becomes predictable, it ceases to be an engine of novelty and change. Here we review inn...

Developing and middle-income countries increasingly empha-size higher education and entrepreneurship in their long-term develop-ment strategy. Our work focuses on the influence of higher education institutions (HEIs) on startup ecosystems in Brazil, an emerging economy. First, we describe regional variability in entrepreneurial network characteristics. Then we examine the influence of elite HEIs in economic hubs on entrepreneur networks. Second, we investigate the influence o...

Science is built on the scholarly consensus that shifts with time. This raises the question of how new and revolutionary ideas are evaluated and become accepted into the canon of science. Using two recently proposed metrics, we identify papers with high atypicality, which models how research draws upon novel combinations of prior research, and evaluate disruption, which captures the degree to which a study creates a new direction by eclipsing its intellectual forebears. Atypi...

Business taxonomies are indispensable tools for investors to do equity research and make professional decisions. However, to identify the structure of industry sectors in an emerging market is challenging for two reasons. First, existing taxonomies are designed for mature markets, which may not be the appropriate classification for small companies with innovative business models. Second, emerging markets are fast-developing, thus the static business taxonomies cannot promptly...