2017

Why Entrepreneurs Choose Risky R&D Projects – But Still Not Risky Enough

Reprint No. 2017:56

Author(s): Erika Färnstrand Damsgaard, Pehr-Johan Norbäck, Lars Persson and Helder VasconcelosYear: 2017 Title: Economic Journal Volume (No.): 127 (605) Pages: 164–199
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Why Entrepreneurs Choose Risky R&D Projects – But Still Not Risky Enough Erika Färnstrand Damsgaard, Pehr-Johan Norbäck, Lars Persson and Helder Vasconcelos

This article examines how entrepreneurs and incumbents differ in their R&D strategies. We show that entrepreneurs have incentives to choose projects with a higher risk and a higher potential in order to reduce expected entry costs. If products are not too differentiated, entrepreneurs will select projects that are too safe from a social point of view, since they do not internalise the business stealing effect on incumbents. Entry support induces entrepreneurs to choose safer projects, whereas R&D support encourages entrepreneurship without affecting the type of entrepreneurship.

Reference:
Färnstrand Damsgaard, Erika, Pehr-Johan Norbäck, Lars Persson and Helder Vasconcelos (2017), "Why Entrepreneurs Choose Risky R&D Projects – But Still Not Risky Enough". Economic Journal 127(605), 164–199.

Pehr-Johan Norbäck

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Lars Persson

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lars.persson@ifn.se

Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective

Pages-from-2019-Calmfors-Gassen---Integrating-Immigrants-into-the-Nordic-Labour-Markets.gif

Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted.

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