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In this study we analyse the effect of team diversity, encouragement to take risks and team incentives on the degree of radicalness of innovation. Empirical research has been conducted with a sample of 95 companies from four innovative industries according to their high number of patents. The results indicate that team diversity and the combined use of long‐ and short‐term incentives are associated with incremental innovation, whereas the development of risk‐taking attitudes within the team is associated with radical innovation.
Cabrales et al. (Fri,) studied this question.