Entrepreneurship under Ambiguity: Extending Aghion and Howitt

This paper extends the Aghion–Howitt growth model by adding an entrepreneurial commercialization stage and replacing known risk with ambiguity. Ambiguity shortens perceived rent horizons, curbing commercialization effort, research, and growth. Policy implications shift toward commercialization support and institutions enabling decentralized experimentation over uniform R&D subsidies.