This paper studies the problem of incentivizing an agent in an innovation project when the progress of innovation is … known only to the agent. I assume the success of innovation requires an intermediate breakthrough and a final breakthrough …

paper discusses how differences in financial and innovation systems affect these two conditions. …

Venture capital (VC) and growth are examined both empirically and theoretically. Empirically, VC-backed startups have … higher early growth rates and initial patent quality than non-VC-backed ones. VC backing increases a startup's likelihood of … reaching the right tails of the firm size and innovation distributions. Furthermore, outcomes are better for startups matched …

instruments such as convertible debt or convertible preferred stock, syndication among venture capitalists, or a short investment …