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Stylized facts indicate that small firms are responsible for a disproportionate share of innovative research. There are … (innovation) with easy to measure activities (routine) is particularly costly, since it will either lead to misallocation of … attention across tasks or to misallocation of risk. Larger firms are at a comparative disadvantage in conducting highly …
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Persistent link: https://www.econbiz.de/10010818437
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...
Persistent link: https://www.econbiz.de/10010818447
Market competition is central to innovative activity, the diffusion process and macro-economic productivity growth. Productivity growth at all levels comes about through institutional reconfiguration in response to the ongoing market process. Stable and sustained long-term growth in output...
Persistent link: https://www.econbiz.de/10010818448