Financing Entrepreneurial Experimentation
Chapter in NBER book Innovation Policy and the Economy, Volume 16 (2016), Josh Lerner and Scott Stern, editors
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 startup innovation across industries, regions and periods of time.This chapter is no longer available for free download, since the book has been published. To obtain a copy, you must buy the book.
Order from Amazon.com in hardcover or paperback
You may be able to access the full text of this document via the Document Object Identifier.
Document Object Identifier (DOI): https://doi.org/10.1086/684983This chapter first appeared as NBER working paper w21278, Financing Entrepreneurial Experimentation, Ramana Nanda, Matthew Rhodes-Kropf
Users who downloaded this chapter also downloaded* these: