How do judgmental overconfidence and overoptimism shape innovative activity?

Arbeitspapier

Recent field evidence suggests a positive link between overconfidence and innovative activities. In this paper we argue that the connection between overconfidence and innovation is more complex than the previous literature suggests. In particular, we show theoretically and experimentally that different forms of overconfidence may have opposing effects on innovative activity. While overoptimism leads to an innovation enhancing effect, judgmental overconfidence inhibits innovation. Our results indicate that future research is well advised to take into account that the relationship between innovation and overconfidence may crucially depend on what type of overconfidence is most prevalent in a particular context.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 106

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: Laboratory, Group Behavior ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Organizational Behavior; Transaction Costs; Property Rights
• Subject: Innovation ; Entrepreneurship ; Overconfidence ; Experiment ; Innovation ; Unternehmer ; Persönlichkeitspsychologie ; Selbstevaluation ; Test

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Herz, Holger ; Schunk, Daniel ; Zehnder, Christian
• Event: Veröffentlichung
• (who): University of Zurich, Department of Economics
• (where): Zurich
• (when): 2013

Further information

• DOI: doi:10.5167/uzh-70289
• Handle: http://hdl.handle.net/10419/77526
• Last update: 10.03.2025, 11:42 AM CET