A study by a Stanford  academic has concluded that a firm's IPO  can put the lid on creativity and innovation. Shai Bernstein of the university's Graduate School of Business  studied thousands of startups  between 1985 and 2003 to write a paper  (PDF file) on the subject, and these are some of his findings:
- Going public causes an exodus of ideas as well as key creative staff.
- Acquired patents after an IPO are almost always of a higher quality than those produced in-house.
- A firm with the same CEO and chairman of the board--think Apple  during those amazing Steve Jobs  years, Mark Zuckerberg's dual role at Facebook --was more innovative than one with two separate people at the helm.
There is, of course, a middle path--going "prublic ," the phablet , if you like, of a firm's status. But what do you think? Does going public signify the beginning of the end, or does it herald the start of something bigger and greater for a firm?
[Image by Flickr user heycreation ]