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External finance is a central issue for innovative nascent ventures. In this study, we argue that innovative nascent ventures may use patents to signal appropriability and prototypes to signal feasibility to potential investors. Using new data on 906 nascent ventures, we find that nascent...
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This essay uses Edmund Phelps’ new book Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change … (Phelps <CitationRef CitationID="CR67">2013</CitationRef>) as inspiration to discuss innovation and entrepreneurship. The book … niggardly evaluation of European innovation, and the lack of convincing empirical evidence for the claim that the rate of …
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innovation to the financiers through patenting and prototyping activities, right in the early stages of the venture. We build a …
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