Encephalization Quotient
Like brain scaling, organizational 'intelligence' (R&D, innovation capacity) scales sublinearly with size.
Brain mass scales as body mass^0.75 in mammals - the same exponent as metabolic rate. Larger animals have relatively smaller brains per unit body mass. The encephalization quotient (EQ) measures actual brain size versus expected brain size for a given body mass. Human EQ is ~7, meaning our brains are 7x larger than expected for a mammal of our size. This positive allometry required compensatory adaptations: extended childhood, high-quality diet, and reduced gut size.
Business Application of Encephalization Quotient
Like brain scaling, organizational 'intelligence' (R&D, innovation capacity) scales sublinearly with size. A company's brain-to-body ratio (R&D investment/production) decreases as the company grows, yet absolute capability increases.