EconPapers    
Economics at your fingertips  
 

Financing Entrepreneurial Experimentation

Ramana Nanda () and Matthew Rhodes-Kropf ()

Innovation Policy and the Economy, 2016, vol. 16, issue 1, 1 - 23

Abstract: The fundamental uncertainty of new technologies at their earliest stages implies that it is virtually impossible to know the true potential of a venture without learning about its viability through a sequence of investments over time. We show how this process of experimentation can be particularly valuable in the context of entrepreneurship because most new ventures fail completely, and only a few become extremely successful. We also shed light on important costs to this process of experimentation and demonstrate how these can fundamentally alter both the rate and direction of start-up innovation across industries, regions, and periods of time.

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.1086/684983 (application/pdf)
http://dx.doi.org/10.1086/684983 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Chapter: Financing Entrepreneurial Experimentation (2015) Downloads
Working Paper: Financing Entrepreneurial Experimentation (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:ipolec:doi:10.1086/684983

Access Statistics for this article

More articles in Innovation Policy and the Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

 
Page updated 2018-06-13
Handle: RePEc:ucp:ipolec:doi:10.1086/684983