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We examine how signals of a candidate’s capability affect perceptions of that person’s commitment to an employer. In four experimental studies that use hiring managers as subjects, we test and show that managers perceive highly capable candidates to have lower commitment to the organization than less capable but adequate candidates and, as a result, penalize high-capability candidates in the hiring process. Our results show that managers have concerns about a high-capability candidate’s future commitment to the organization because they view highly capable candidates as having lower levels of organizational interest—meaning they care less about the mission and values of the organization and exert a lower level of effort toward those ends—and because they assume highly capable candidates have more outside job options, increasing their flight risk. Our findings highlight that capability signals do not necessarily afford candidates an advantage in selection, suggesting an upper limit on credentials and other signals of capability in helping candidates get jobs. Our study contributes to research on labor markets, human capital, and credentialing by offering a theory for why and when capability signals can negatively influence job candidate selection decisions.

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This paper discusses some aspects of innovation in China. As China seeks to transition to a knowledge-based economy, it may become more important for China to develop innovative technologies to sustain economic growth. How do China's history, culture, institutions, and organizations aid or hinder innovation? How does China's national innovation system compare to the innovation culture in the US, as well as other developed and emerging economies? What are the prospects for the future of the Chinese national innovation system?Our starting point is the Needham Puzzle -the paradox that while China was once a world leader in technological development, it fell behind; the Industrial Revolution happened in Europe rather than in China. Potential explanations for the Needham Puzzle may shed light on the challenges facing innovation in modern China. We identify three factors that might help explain the Needham Puzzle; assess how the Needham Puzzle and Chinese culture and history have affected the modern innovation system; discuss comparative aspects of innovation ecosystems in the United States and elsewhere; and suggest that Chinese innovation emphasizes exploitation and refinement of existing knowledge to the exploration and development of new knowledge. We also discuss implications for the future of innovation in China.

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