When Professionals Alter Their Paths, They Face Consequences
In the dynamic world of science and technology, pivoting - the process of shifting focus towards new areas - can be a crucial strategy for adapting to changing demands or unexpected findings. However, a new study by a team led by Benjamin Jones, a professor at the Kellogg School, suggests that such shifts may come with a cost, known as the 'pivot penalty'.
The research, published in the journal *Science*, quantified the pivot of a paper based on how closely the categories of its references aligned with those in the same researcher's prior papers. The team found that papers requiring the least amount of pivoting were 40% more likely to be high-impact papers than the rest of the researcher's work. Conversely, the paper with the biggest pivot was 36% less likely to be a high-impact paper.
The pivot penalty refers to potential drawbacks or costs associated with pivoting, such as loss of momentum, resource reallocation, and potential damage to a researcher's reputation. However, successful pivots can outweigh these penalties by opening new avenues for research or innovation, enhancing adaptability, and fostering collaboration.
The study, which assessed the impact of 1.8 million technology patents from 1980-2015 across 127 technology classifications, also found that pivoting caused a new patent's market value to decrease steeply. Patents that required the most pivoting had a 29% lower market value than those that required the least pivoting.
The team, which included Kellogg's Ryan Hill, Dashun Wang, PhD student Xizhao Wang, Yian Yin of Cornell University, and Carolyn Stein of the University of California, Berkeley, explored questions about shifting focus in science research and technological inventions. They found that the pivot penalty affected nearly all fields of research and classes of patents and became more severe over time.
Organizations often acquire smaller companies to obtain expertise and limit the collective pivot penalty. In the context of the Covid-19 pandemic, the ability to pivot well is particularly critical. The apparatus of research and development needs to spread out to have people who are experts in different areas to handle emergent challenges and tackle bigger questions.
The study underscores the importance of strategic planning, effective collaboration, flexible funding mechanisms, continuous learning, and data-driven decisions in mitigating the pivot penalty. It also highlights the need for a diverse workforce with expertise in various areas to tackle the challenges of an ever-changing world.
Science and technology companies may face a 'pivot penalty' when shifting focus towards new areas of research or innovation, as highlighted in a study published in the journal Science. This penalty refers to potential losses in momentum, resources, and reputation, but successful pivots can open new avenues for growth, adaptability, and collaboration. In the financial realm, businesses often mitigate the pivot penalty by acquiring smaller companies with expertise in different areas, particularly crucial in addressing emergent challenges like the Covid-19 pandemic.
