R&D profitability: the role of risk and Knightian uncertainty

This paper provides the first empirical attempt of linking firms’ profits and investment in R&D revisiting Knight’s (1921) distinction between uncertainty and risk. Along with the risky profit-maximizing scenario, identifying a second, off-setting, unpredictable bias that leads to heterogeneous returns to R&D investments is crucial to fully understand the drivers of corporate profits.

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Year of publication:	2015
Authors:	Amoroso, Sara ; Moncada-Paterno-Castello, Pietro ; Vezzani, Antonio
Institutions:	Institute for Prospective Technological Studies (IPTS), Joint Research Centre
Subject:	Corporate R&D investment \| firms’ operating profits \| Knightian uncertainty \| ambiguity

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Extent:	application/pdf
Series:	JRC-IPTS Working Papers on Corporate R&D and Innovation.
Type of publication:	Book / Working Paper
Notes:	Number 2015-01 9 pages
Classification:	O30 - Technological Change; Research and Development. General ; d22 ; D81 - Criteria for Decision-Making under Risk and Uncertainty
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011183307