Why Entrepreneurs Choose Risky R&D Projects - But Still Not Risky Enough

Arbeitspapier

Entrepreneurs face higher commercialization costs than incumbents. We show that this implies that entrepreneurs will choose more risky projects than incumbents, aiming to reduce their high expected marginal commercialization cost. However, entrepreneurs may select too safe projects from a social point of view, since they do not internalize the business stealing effect. We also show that commercialization support induces entrepreneurship but may lead to mediocre entrepreneurship by inducing entrepreneurs to choose less risky projects, whereas R&D support encourages entrepreneurship without affecting the type of entrepreneurship. Using Swedish patent citation data, we find empirical support for predictions of the model.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IFN Working Paper ; No. 926

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies ; Market Structure, Firm Strategy, and Market Performance: General ; Firm Objectives, Organization, and Behavior: General ; New Firms; Startups ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General
• Thema: Entrepreneurship ; Innovation ; Start-ups ; Ownership ; Breakthrough ; Quality

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Färnstrand Damsgaard, Erika ; Norbäck, Pehr-Johan ; Persson, Lars ; Vasconcelos, Helder
• Ereignis: Veröffentlichung
• (wer): Research Institute of Industrial Economics (IFN)
• (wo): Stockholm
• (wann): 2012

Weitere Informationen

• Handle: http://hdl.handle.net/10419/81447
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ