WHY ENTREPRENEURS CHOOSE RISKY R&D PROJECTS - BUT STILL NOT RISKY ENOUGH

• 成果类型: Article
• 署名作者: Damsgaard, Erika Farnstrand; Hjertstrand, Per; Norback, Pehr-Johan; Persson, Lars; Vasconcelos, Helder
• 署名单位: Research Institute of Industrial Economics (IFN); Centre for Economic Policy Research - UK; Universidade do Porto; Universidade do Porto
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12470
• 发表日期: 2017
• 页码: F164-F199
• 关键词: product market; COMPETITION; INNOVATION; FIRMS; industry; size

摘要

This article examines how entrepreneurs and incumbents differ in their R&D strategies. We show that entrepreneurs have incentives to choose projects with a higher risk and a higher potential in order to reduce expected entry costs. If products are not too differentiated, entrepreneurs will select projects that are too safe from a social point of view, since they do not internalise the business stealing effect on incumbents. Entry support induces entrepreneurs to choose safer projects, whereas R&D support encourages entrepreneurship without affecting the type of entrepreneurship.