|
on Innovation |
| By: | Antonelli, Crisiano (University of Turin) |
| Abstract: | The limits of both evolutionary approaches, based upon biological metaphors, and the new growth theory based on the early economics of knowledge, are becoming apparent. Considerable progress can be made by implementing an evolutionary complexity approach that builds upon the legacy of Schumpeter (1947) with the notions of: i)reactive decision making; ii) multiple feedback; iii) innovation as the outcome of an emergent system process rather than individual action; iv);organized complexity and knowledge connectivity; iv) endogenous variety; vi) non ergodic path dependent dynamics. Building upon these bases, the paper articulates an endogenous theory of innovation centered upon the analysis of the systemic conditions that make the creative reaction and hence the introduction of innovations possible. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201704&r=ino |
| By: | IKEUCHI Kenta; MOTOHASHI Kazuyuki; TAMURA Ryuichi; TSUKADA Naotoshi |
| Abstract: | This paper presents new indicators measuring the science intensity of industry in Japan, linking a scientific paper database (science), patent information (technology), and economic census data (industry). The new indicators reflect the interaction between science and industry, via academic patenting activities, which cannot be measured by an existing indicator of science linkage: non-patent literature (NPL) citations by patents. As the academic sector gets more involved in patenting activities, its scientific knowledge is being utilized by industries that are not categorized as science-based. Additionally, it was revealed that scientific knowledge has been increasingly used for industrial innovation over the last 10 years across all academic disciplines. Our study reiterates that public support of science is essential for industrial innovation. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:17056&r=ino |
| By: | SCHOLZ Eva-Marie (Université catholique de Louvain, CORE, Belgium) |
| Abstract: | In this paper, we study the relationship between capacity constraints and licensing strategies. To doso, we focus on the licensing strategy of an outside innovator who licenses a process innovation to the downstream sector of a vertical Cournot oligopoly. Downstream firms soruce an essential production factor from a capacity constrained upstream sector. In this setting, we show that the innovator optimally licenses large innovations via per-unit royalty contracts and small innovations via fixed fee contracts. Moreover, an increase in the strength of the capacity constraints makes it more likely that hte optimal licensing contract includes a strictly positive per-unit royalty rate. As a final point, we discuss the relationship between capacity constraints and the social optimality of the innovator’s licensing strategy as measured by aggregate welfaore or the diffusion of the innovation on the downstream market |
| Keywords: | capacity constraints; licensing contracts, vertical Cournot oligopoly |
| JEL: | D43 L13 |
| Date: | 2017–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2017004&r=ino |
| By: | IKEUCHI Kenta; MOTOHASHI Kazuyuki |
| Abstract: | This paper uses patent filings as an indicator of innovation and investigates the relationship between innovation and the survival of young firms, based on a dataset linking the Economic Census and the Institute of Intellectual Property (IIP) Patent Database for Japanese firms. We construct indicators showing the organization of innovative activities, such as external collaboration on inventions and the type of collaborative partners, and disentangle two competing factors on innovative activities, i.e., technological capability (positive influencing firm survival) and commercial risk (negative influencing firm survival). We find that positive impacts surpass negative ones in general, and this tendency strengthens when patents have relatively greater potential market value. In addition, collaboration with universities invariably leads to a higher probability of survival, while the impact of collaboration with other firms depends on firm size, namely, a certain level of managerial resources to overcome the complexity involved in open innovation is required to achieve gains from collaboration. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:17055&r=ino |
| By: | Wu, Xiaoping |
| Abstract: | The interplay between patents and standards in the information and communication technology (ICT) sector has been intensively debated at international, regional and national levels over the past decades. In essence, the debate is firstly about the extent and impact of patent holdup and holdout in the ICT sector, and then about how to eliminate or reduce these practices. While standard setting organizations (SSOs), industry bodies, as well as judicial and administrative authorities have made great efforts to solve the issue of patent holdup and holdout, there is still an ongoing struggle among divergent stakeholders. Patent holdup and holdout directly impacts the innovation and dissemination of patented technology, the harmonization and implementation of standards, and international trade, which are promoted by the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) and the Agreement on Technical Barriers to Trade (TBT Agreement). This working paper provides an overview of the current debate on patent holdup and holdout in the ICT sector, analyses existing policy measures and their limitations, and then highlights the relevance of the WTO to this debate. |
| Keywords: | patent,patent holdup,patent holdout,standards,standard setting organizations,FRAND,competition,injunctions,royalties,WTO TRIPS,WTO TBT |
| JEL: | K11 K13 K30 O34 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wtowps:ersd201708&r=ino |
| By: | Kim , Jeong-Gon (Korea Institute for International Economic Policy); Na , Seung Kwon (Korea Institute for International Economic Policy); Jang , Jong-Moon (Korea Institute for International Economic Policy); Lee , Sung Hee (Korea Institute for International Economic Policy); No , Suyeon (Korea University) |
| Abstract: | Korean Abstract: 인터넷과 ICT가 산업 혁신을 촉진하는 핵심요소로 크게 주목받으면서 디지털 산업혁신을 위한 각국의 정책적 노력이 확대되고 있다. 본 보고서는 디지털 산업혁신의 이론을 체계적으로 제시하고, 범용기술로서 ICT의 산업별 생산성 파급효과를 검증하는 한편, 주요국의 디지털 산업혁신 역량을 요인별로 비교분석하였다. 그리고 디지털 산업혁신을 주도하는 미국, EU 및 독일, 일본, 중국의 정책을 체계적으로 분석·평가하였으며, 이상의 연구결과와 한국의 정책에 대한 검토를 토대로 디지털 산업혁신의 정책방향을 제시하였다. English Abstract: The digital transformation, which is often called as the Fourth Industrial Revolution, is attracting attention as a new driving force for economic growth. Digitalization is emerging as a measure to mid- and long-term trends, such as demographic change and transition to a low-carbon economy, while leading economic and industrial innovation. It is confirmed empirically that for high-income countries including the United States, digitization contributes to productivity improvement in other industries. However, these effects differ from country to country depending on the capabilities of digital innovation such as ICT infrastructure, R&D investment, ICT industry competitiveness, legal system, human resources, business use of ICT, and entrepreneurial activities. In Korea, ICT infrastructure is world-class, and ICT adoption and utilization are highly competitive. However, the competitiveness of ICT services, the effectiveness of R&D investment, contribution to innovation, legal system, human resources and entrepreneurial activities are far behind. By contrast, the United States has the highest level of competitiveness in ICT export, R&D investment and innovation, human resources and entrepreneurial activity. These factors are key concerns of the countries' digital innovation policy, and each country is making a policy effort centering on it. The digital innovation policies of the United States, EU, Germany, Japan and China are similar due to the general characteristics of digital transformation, but they vary according to the capabilities and circumstances of each country. As in our analysis, the United States most clearly demonstrates the general purpose technology hypothesis that ICT capital contributes to increased productivity in the industry. In the United States, ICT has been a key driver of economic growth since the 1980s, and digital innovations led by Internet platform companies have become a source of mid- and long-term economic growth in the Obama administration. Recently, in the United States, innovation in the digital innovation is dominated by ICT or Internet service companies, and traditional manufacturing companies are also reviving through digitization. The US government is constantly investing in strategic research areas and advanced technologies required for digital innovation based on Strategy for American Innovation or NITRD, a government-level IT research and development program. In addition, the federal government operates a Chief Information Officer (CIO) and a Chief Technology Officer (CTO) to improve digital-based government management and to accelerate industrial innovation. The private sector is leading digital innovation while the government focuses on R&D investment in digital industry platforms and basic technologies such as big data and Internet of Things, solving public problems using ICT, and building consumer information protection systems. |
| Date: | 2016–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kieppa:2016_015&r=ino |
| By: | Mohavedi, Mohammad; Shahbazi, Kiumars; Gaussens, Olivier |
| Abstract: | This paper presents an analysis of the crucial relationship between innovation, productivity, and export in Small and Medium Enterprises (SMEs). The primary aims of this study are to evaluate the role of innovation in the premium export and test the hypothesis of firm conscious self-selection on willingness to export. To this end, the authors used their database of SMEs, obtained from the survey conducted in the IDEIS project, which provides highly pertinent information on innovation and export areas. Based on the aforementioned database, the authors evaluate apparent premium of exportation and innovation. In addition, they demonstrate the effectiveness of the export premium for high exportation firms that implement process and organization innovations. Finally, the authors analyse the effect of conscious self-selection from the export process that transforms an intention to export into the capacity to export in short term. The conscious self-selection to export is revealed by simultaneously endogeneizing productivity and innovation output based on recursive non-linear model. |
| Keywords: | export process,productivity,export premium,innovation premium |
| JEL: | C14 C35 D22 F12 O31 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201714&r=ino |
| By: | Sandra Planes-Satorra (OECD); Caroline Paunov (OECD) |
| Abstract: | Innovation policies are central to growth agendas in most countries, but have figured much less prominently in strategies to promote social inclusion. In recent years, many countries have implemented “inclusive innovation policies”– a specific set of innovation policies that aim to boost the capacities and opportunities of disadvantaged individuals to engage in innovation activities, including research and entrepreneurship. Examples include the provision of grants to researchers from disadvantaged groups, the deployment of programmes to popularise science and technology, the provision of micro-credit to entrepreneurs and the provision of grants to firms locating their R&D activities in peripheral regions. This paper analyses the role that inclusive innovation policies can play in tackling social, industrial and territorial inclusiveness challenges by drawing on 33 detailed policy examples from 15 countries. The paper discusses why these policies should be a priority, explores the specific challenges that arise in their implementation and provides recommendations as to how the challenges can best be addressed. |
| Date: | 2017–04–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2017/2-en&r=ino |
| By: | Orsatti, Gianluca; Pezzoni, Michele; Quatraro, Francesco (University of Turin) |
| Abstract: | By exploiting the EPO universe of patent data, we investigate how inventors’ teams recombinant capabilities drive the creation of Green Technologies (GTs).Results suggest the importance of recombinant creation patterns in fostering the generation of GTs. We also find diverse moderating effects of technological green experience and environmental regulation stringency on exploration behaviors. Precisely, the positive effect of team’s explorative behaviors is magnified for teams lacking technological green experience, even more in regimes of weak environmental regulation. Conversely, the effect of explorative behaviors is reduced for green experienced teams, especially in regimes of weak environmental regulation. Finally, we find positive effects of both team’s previous technological green experience and environmental regulation stringency. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201711&r=ino |
| By: | Anton Bondarev; Alfred Greiner (University of Basel) |
| Abstract: | In this paper we present an inter-temporal optimization problem of a representative R&D firm that simultaneously invests in horizontal and vertical innovations. We posit that learning-by-doing makes the process of quality improvements a positive function of the number of existing technologies with the function displaying a convex-concave form. We show that multiple steady-states can arise with two being saddle point stable and one unstable with complex conjugate eigenvalues. Thus, a threshold with respect to the variety of technologies exists that separates the two basins of attractions. From an economic point of view, this implies that a lock-in effect can occur such that it is optimal for the firm to produce only few technologies at a low quality when the initial number of technologies falls short of the threshold. Hence, history matters as concerns the state of development implying that past investments and innovations determine whether the firm produces a large or a small variety of high- or low-quality technologies, respectively. |
| Keywords: | Optimal control, horizontal and vertical innovations, multiple steadystates, thresholds, lock-in |
| JEL: | C61 D92 O32 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2017/06&r=ino |
| By: | Antonelli, Cristiano (University of Turin) |
| Abstract: | The introduction of information and communication technologies (ICT) has changed in depth the organization of the generation of knowledge reducing significantly knowledge absorption cost and improving knowledge interactions. The digital generation of knowledge relies on the systematic access and use of the stock of quasi-public knowledge. ICT enable to reconsider the knowledge appropriability trade-off as it helps to better appreciate the positive role of knowledge spillovers in the recombinant generation of new knowledge, next to the well-known negative effects of the limited appropriability of knowledge on revenues and hence incentives to innovate. This new analytical framework calls for an augmented role of telecommunications policy that should take into account the positive effects of knowledge connectivity on the generation of knowledge. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201713&r=ino |
| By: | Jens Leth Hougaard (Department of Food and Resource Economics, University of Copenhagen); Chiu Yu Ko (Department of Economics, National University Singapore); Xuyao Zhang (Lee Kuan Yew School of Public Policy, National University Singapore) |
| Abstract: | Setting an industry-wide standard is crucial for information and communication technologies for interoperability, compatibility and efficiency. To minimize holdup problems, patent holders are often required to ex-ante commit to licensing their technologies under Fair, Reasonable and Non-Discriminatory (FRAND) terms. Yet, there is little consensus, in both courtrooms and industries, on the exact meaning of FRAND. We propose a welfare economic framework that enables a precise distinction: fairness in the distribution of royalty payments among patent users, and reasonableness in setting the size of the compensation to the patent holder, where both the size and the distribution of payments are determined in a non-discriminatory way making sure that similar firms are treated similarly. We illustrate our approach in various classic models from industrial organization, and discuss further potential applications. |
| Keywords: | FRAND-licensing, Fair royalties, Standard setting, Patent, Shapley value |
| JEL: | D63 K2 L3 L44 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2017_04&r=ino |
| By: | Gabriel Rissola (European Commission – JRC); Fernando Hervás (European Commission - JRC); Milena Slavcheva (European Commission - JRC); Koen Jonkers (European Commission – JRC) |
| Abstract: | The present case study pursues to identify key success factors in Espoo innovation ecosystem, with a particular attention to the role of Aalto University, with a view to inform policies aimed at supporting the strengthening and emergence of existing and new place-based innovation ecosystems in other EU regions and cities, as well as of entrepreneurial universities. It starts by defining what a place-based innovation ecosystem is intended to be, and identifies a conceptual framework that can operationalise the study of concrete cases. The study continues with a presentation of the main local actors and pre-existing enabling factors, progressively moves to the catalysers that have made this innovation garden flourish (notably the reforms that enabled the emergence of Aalto University with its particular governance model) and finally analyses its Quadruple Helix collaboration model and the way the whole ecosystem is orchestrated. |
| Keywords: | place-based, territorial, urban, innovation ecosystem, smart specialisation, entrepreneurial university, quadruple helix, orchestration |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc106122&r=ino |
| By: | Amoroso, Sara (European Commission); Audretsch, David (Indiana University); Link, Albert (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | The purpose of this paper is to explore the relationship between an entrepreneur’s experience and education and his/her reliance on alternative sources of knowledge for exploring new business opportunities. The extant literature that is at the crossroads between sources of knowledge and the experiential and intellectual base of an entrepreneur (i.e., dimensions of his/her human capital) suggests that it is through experience and through education that an entrepreneur obtains knowledge. Using information on a sample of high-tech manufacturing firms across 10 European countries, we explore heterogeneities in the influence of experience, age, and education of the firm’s primary founder on the perceived importance of (i.e., use of) alternative sources of knowledge. We find that the association of these characteristics differs significantly across sources of knowledge, and across European regions. Education is positively related to the importance of knowledge from research institutes and internal know-how, while age is negatively related to the importance of research institutes and positively related to publications and conferences. On the one hand, in South/East European countries, the importance of internal know-how is positively associated with age and education, but negatively associated with experience. On the other hand, the characteristics of primary founders of North/West European firms are more linked to the importance of the participation to funded research programmes. This source of knowledge is related positively with age and education and negatively with experience. |
| Keywords: | Entrepreneurship; Knowledge; Experience; Education; Human Capital |
| JEL: | D83 J24 L26 |
| Date: | 2017–04–25 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2017_004&r=ino |
| By: | Anabela Marques Santos; Michele Cincera |
| Keywords: | access to finance; innovative firms; European Union |
| JEL: | O16 O31 O52 |
| Date: | 2017–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:ict:wpaper:2013/250364&r=ino |
| By: | Charles Hulten; Leonard Nakamura |
| Abstract: | We extend the conventional Solow growth accounting model to allow innovation to affect consumer welfare directly. Our model is based on Lancaster’s New Approach to Consumer Theory, in which there is a separate “consumption technology” that transforms the produced goods, measured at production cost, into utility. This technology can shift over time, allowing consumers to make more efficient use of each dollar of income. This is “output-saving” technical change, in contrast to the Solow TFP “resource-saving” technical change. One implication of our model is that living standards can rise at a greater rate than real GDP growth. |
| JEL: | E01 O3 O4 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23315&r=ino |
| By: | Thanh Tam Nguyen-Huu; Minh Nguyen-Khac; Quoc Tran-Nam |
| Abstract: | This is a pioneer study investigating the relationship between environmental compliance and TFP convergence for SMEs. It examines the impacts of environmental compliance, and its combination with innovation, on TFP convergence of manufacturing SMEs. We applied the dynamic panel regression method to estimate stochastic TFP. We find evidence of a ß-convergence but a s-divergence. Impacts of environmental practices of firms—pollution abatement and control expenditure, and environmental treatment—are only significant through their interaction with innovation. The ß-convergence in firms’ TFP is influenced by their industrial identity, while firms’ size and investment have marginal impacts. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2017-92&r=ino |
| By: | Antonelli, Cristiano (University of Turin) |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201706&r=ino |
| By: | Ipek AKAD; İpek AKAD |
| Abstract: | The main question in this work is to discover how the sectors impact on the economic growth of governments and how governments that aim economical growth optimally distribute R&D incentives among sectors. We develop Two-Sector Endogenous Growth Model allowing for consumers, sector representative firms and government. Metodology: numerical simulation of the model. Increased support to the sector that uses more technology, create more positive results for the economy. But, this results are ambiguous when applied at the same time the tax package and government incentives. |
| Keywords: | Turkey, Growth, General equilibrium modeling |
| Date: | 2016–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:009007:9629&r=ino |
| By: | Nuri Ersahin |
| Abstract: | I analyze the impact of strengthening of creditor rights on productivity using plant-level data from the U.S. Census Bureau. Following the adoption of anti-recharacterization laws that improve the ability of lenders to access the collateral of the firm, total factor productivity of treated plants increases by 2.6 percent. This effect is mainly observed among plants belonging to financially constrained firms. Furthermore, treated plants invest in capital of younger vintage and newer technology, and become more capital-intensive. My results suggest that strengthening of creditor rights leads to a relaxation in borrowing constraints, and helps firms adopt a more efficient production technology. |
| Keywords: | Creditor Rights; Productivity; Anti-Recharacterization Laws; Bankruptcy |
| JEL: | D24 G32 G33 K22 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:17-36&r=ino |
| By: | Bock, Carolin (TU Darmstadt); Watzinger, Martin (University of Munich) |
| Abstract: | Our study analyzes the effect of the capital gains tax on the individual investment decisions of venture capitalists. By doing so, we are able to study the decisions for a sample of 76,852 funding rounds in 32 countries from 2000 to 2012. Our results support the predictions of the theoretical model that higher capital gains tax rates are associated with fewer start-ups financed and a lower probability of receiving follow-up funding. However, the results concerning the effect on the probability of success of start-ups show that a higher tax burden is associated with a higher probability of eventual start-up success. |
| Keywords: | Venture Capital; Capital Gains Tax; Selection Effect; Follow-up Funding; Innovation; |
| JEL: | G24 H25 H32 |
| Date: | 2017–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:30&r=ino |
| By: | Anton Bondarev; Alfred Greiner (University of Basel) |
| Abstract: | This paper combines horizontal and vertical innovations to generate an endogenous growth model allowing for structural change as an endogenous phenomenon. Every industry is profitable only for a limited period of time, making the effective time of existence of the technology endogenous and finite. We find that in such an economy endogenous structural change is the source of ongoing economic growth. Further, the range of existing sectors stays constat as well as growth rates as long as the technologies are symmetric. |
| Keywords: | Endogenous Growth, Creative Destruction, Arrow Replacement Effect, Endogenous Structural Change, Horizontal Innovation, Endogenous Patents |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2017/05&r=ino |
| By: | Zuzana Brixiová (SALDRU, University of Cape Town and Institute of Labor Economics (IZA)); Balázs Égert (OECD Economics Department; University of Paris X-Nanterre and CESifo) |
| Abstract: | This paper develops a model of costly firm creation in an economy with weak institutions, costly business environment as well as skill gaps where one of the equilibrium outcomes is a low-productivity trap. The paper tests the implications of the model using a cross-sectional dataset including about 100 countries. Both theoretical and empirical results suggest that to move the economy into a productive equilibrium, complementarity matters: reforms to improve the business environment tend to be more effective in creating productive firms when accompanied by narrowing skill gaps. Similarly, more conducive business regulations amplify the positive impact on firm creation of better education and reduced skill mismatches. To escape a low-productivity trap, policymakers should thus create a pro-business framework and a well-functioning education system. |
| Keywords: | Model of start-ups and strategic complements, institutions, education, low-income countries, threshold regression |
| JEL: | L26 J24 J48 O17 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ldr:wpaper:204&r=ino |
| By: | Heidrun Zeug (Zeug Consulting (Miltenberg, Germany)); Gunter Zeug (Terranea UG (Burgstadt, Germany)); Conrad Bielski (EOXPLORE UG (Weil am Rhein, Germany)); Gloria Solano-Hermosilla (European Commission – JRC); Robert M’barek (European Commission – JRC) |
| Abstract: | Recent food crises have revealed the importance of timely and reliable food price information for food security monitoring and to support informed policy decision making. The increasing number of mobile phone users in Africa, combined with improved networks and broadband coverage, makes it increasingly possible to use mobile-based crowdsourcing to obtain accurate and up-to-date food price information. The use of mobile technologies also affords the possibility of reaching a large number of volunteers (crowd workers) in specific geographic locations, thus enhancing the available sets of information. This study provides a literature review of the concept of crowdsourcing and an overview and analysis of previous and on-going innovative food price collection initiatives in developing countries, particularly in Africa. Based on the research and interviews with relevant stakeholders, potential benefits and challenges have been identified and a set of recommendations has been drafted. The research shows that there is not a single crowdsourcing solution. The main challenges are encouraging crowd participation, and ensuring that data collected are trustworthy and of high quality, which in turn depends on offering the right incentives. Although the financial rewards offered to the crowd are often low, completely unpaid voluntary work is not common, which to some extent limits the potential cost advantage of crowdsourcing methods of data collection. New technologies empower people, and crowdsourcing might in future have potential to provide additional earnings and skills in poor communities, where skill development and ensuring access to technology are both potentials and challenges. |
| Keywords: | Crowdsourcing, food prices, Africa, mobile technologies |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc103294&r=ino |
| By: | M.A. Boermans; Daan Willebrands |
| Abstract: | Risk attitudes of entrepreneurs are well-established drivers of business performance. Most empirical studies in this field only take into account risk propensity, leaving out the complementary concept of risk perception. Using data on 611 entrepreneurs from Tanzania, we show that risk perception is positively associated with business performance. In addition, we classify the entrepreneurs in four different groups based on their risk profile. The results show that the worst performing entrepreneurs are those with low risk perception and high risk propensity. |
| Keywords: | risk attitude, risk perception, risk propensity, entrepreneurship, business performance, Africa |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1704&r=ino |
| By: | Strausz, Roland (Humboldt University Berlin) |
| Abstract: | Crowdfunding provides innovation in enabling entrepreneurs to contract with consumers before investment. Under aggregate demand uncertainty, this improves screening for valuable projects. Entrepreneurial moral hazard and private cost information threatens this benefit. Crowdfunding\'s after-markets enable consumers to actively implement deferred payments and thereby manage moral hazard. Popular crowdfunding platforms offer schemes that allow consumers to do so through conditional pledging behavior. Efficiency is sustainable only if expected returns exceed an agency cost associated with the entrepreneurial incentive problems. By reducing demand uncertainty, crowdfunding promotes welfare and complements traditional entrepreneurial financing, which focuses on controlling moral hazard. |
| Keywords: | Crowdfunding; entrepreneurship; moral hazard; demand uncertainty; |
| JEL: | D82 G32 L11 M31 |
| Date: | 2017–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:2&r=ino |