Uncertainty and the size distribution of rewards from innovation

By F. Scherer, Dietmar Harhoff, Jorg Kukies. 2000

170 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/854cfd7195defc2084585254e60ccad6098ca36a

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Citations in the corpus

What turns knowledge into innovative products? The role of entrepreneurship and knowledge spillovers (2009, unknown): “Due to their high degree of novelty, new-to-the-market innovations are characterized by high levels of technological and market uncertainty (Scherer et al. 2000), whereas this may not be true of new-to-the-firm innovation.”
Strategic Entrepreneurs at Work: The Nature, Discovery, and Exploitation of Entrepreneurial Opportunities (2007, background): “Given this uncertainty, the ends themselves become elusive because they are highly variable and uncertain (Scherer et al., 2000).”
Throwing Good Money after Bad? Political and Institutional Influences on Sequential Decision Making in the Venture Capital Industry (2007, background): “Between 1969 and 1988, the top 10 percent of venture capital investments accounted for 62 percent of all venture capital returns (Scherer, Harhoff, and Kukies, 2000), and over 30 percent of venture capital investments resulted in a net loss (Sahlman, 1990).”
Energy, the Environment, and Technological Change (2009, unknown): “4 probability but very high value outcomes (Scherer et al. 2000).”
Portfolio diversification and value at risk under thick-tailedness (2009, background): “( 2000 ) and Silverberg and Verspagen ( 2007 ) report the tail indices α to be considerably less than one for financial returns from technological innovations.”
Innovation, Future Earnings, and Market Efficiency (2005, background): “This cost advantage may dissuade other firms from entering the technology field and developing their own standards (Spence [1984]).”
Environmental Policy and Technological Change (2002, background): “Not only is the variance of the distribution of expected returns much larger than for other investments, but much or even most of the value may be associated with very low-probability but very high value outcomes (Scherer et al. 2000).”
Entrepreneurial Finance Meets Organizational Reality: Comparing Investment Practices and Performance of Corporate and Independent Venture Capitalists (2010, unknown): “Funding entrepreneurial ventures is tantamount to investing in risky projects due to a high level of uncertainty regarding technological feasibility, future demand, and so forth (Kaplan and Stromberg, 2004; Scherer, Harhoff, and Kukies, 2000).”