. We also show that commercialization support induces entrepreneurship but may lead to mediocre entrepreneurship by … inducing entrepreneurs to choose less risky projects, whereas R&D support encourages entrepreneurship without affecting the … type of entrepreneurship. Using Swedish patent citation data, we find empirical support for predictions of the model …

incentives to choose projects with higher risk and a higher potential in order to reduce expected commercialization costs … business stealing effect. Commercialization support induces entrepreneurship but may lead to mediocre entrepreneurship by … inducing entrepreneurs to choose less risky projects, whereas R&D support encourages entrepreneurship without affecting the …