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.
To read the original article: Stanford Study Claims That IPOs Stifle Startups' Innovation Chops | Fast Company
