Harnessing Star Power: The Distinct Effects of Star Inventors on Radical and Incremental Innovation

Abstract Star inventors are highly valuable resources, offering scarce knowledge and expertise that significantly enhance a firm's innovation performance. Beyond their expertise, what sets star inventors apart is their star status – a role that prescribes them high positions in organizational hierarchy and the power to steer resource allocation within the organization. The status‐based perspective suggests that star inventors pursue activities that align with and reinforce their high‐status. Integrating these insights, we explore how star inventors distinctively influence incremental innovation and radical innovation of firms. Specifically, we propose that the effect of star inventors on incremental innovation follows an inverted U‐shaped relationship, whereas their effect on radical innovation is continuously positive. Further, we posit that collaboration intensity between star inventors enhances radical innovation but does not similarly benefit incremental innovation. Analysing data from publicly traded, R&D‐active US firms and their more than one million patents, we broadly find support for our hypotheses. Our primary contribution lies in explaining how status shapes star inventors' distinct contributions to incremental and radical innovations, offering insights to support strategic decision‐making in managing star talent.