Entrepreneurship as experimentation

Journal of Economic Perspectives

Volumn 28, Issue 3, 2014, Pages 25-48

  Kerr, William R ^a,b   Nanda, Ramana ^a,b   Rhodes Kropf, Matthew ^a,b  

^a HARVARD BUSINESS SCHOOL   (United States)

^b NATIONAL BUREAU OF ECONOMIC RESEARCH   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84907486091     PISSN: 08953309     EISSN: 19447965     Source Type: Journal    
DOI: 10.1257/jep.28.3.25     Document Type: Article

References (87)

1. Acemoglu, Daron, Ufuk Akcigit, Nicholas Bloom, and William R. Kerr. 2013. "Innovation, Reallocation and Growth." NBER Working Paper 18993.
2. Akcigit, Ufuk, and William Kerr. 2010. "Growth through Heterogeneous Innovations." NBER Working Paper 16443.
3. Angel Capital Association. 2012. "ACA, Angel Groups and Angel-Backed Companies." Slides, September. http://www.angelcapitalassociation.org/data/Documents/Resources/ACAandAngelGroupBackground09-12.pdf.
4. Autor, David H., William R. Kerr, and Adriana D. Kugler. 2007. "Does Employment Protection Reduce Productivity? Evidence from US States." Economic Journal 117(521): 189-217.
5. Bergemann, Dirk, and Ulrich Hege. 2005. "The Financing of Innovation: Learning and Stopping." RAND Journal of Economics 36(4): 719-52.
6. Bergemann, Dirk, Ulrich Hege, and Liang Peng. 2008. "Venture Capital and Sequential Investments." Working paper.
7. Berkowitz, Jeremy, and Michelle J. White. 2004. "Bankruptcy and Small Firms' Access to Credit." Rand Journal of Economics 35(1): 69-84.
8. Bessemer Venture Partners. No date. "Antiportfolio." http://www.bvp.com/portfolio/antiportfolio.
9. Blacharski, Dan. 2013. "Top Ten Ways the Cloud Has Changed How Startups Launch." Techie.com, November, 26. http://techie.com/top-ten-ways-the-cloud-has-changed-how-startups-launch/.
10. Black, Bernard S., and Ronald J. Gilson. 1998. "Venture Capital and the Structure of Capital Markets: Banks versus Stock Markets." Journal of Financial Economics 47(3): 243-77.
11. Black, Sandra E., and Philip E. Strahan. 2002. "Entrepreneurship and Bank Credit Availability." Journal of Finance 57(6): 2807-33.
12. Bozkaya, Ant, and William Kerr. Forthcoming. "Labor Regulations and European Venture Capital." Journal of Economics and Management Strategy.
13. Brown, James R., Steven M. Fazzari, and Bruce C. Petersen. 2009. "Financing Innovation and Growth: Cash Flow, External Equity and the 1990s R&D Boom." Journal of Finance 64(1): 151-85.
14. Cerqueiro, Geraldo, Deepak Hegde, María Fabiana Penas, and Robert Seamans. 2013. "Debtor Rights, Credit Supply, and Innovation." Unpublished paper.
15. Cetorelli, Nicola, and Philip Strahan. 2006. "Finance as a Barrier to Entry: Bank Competition and Industry Structure in Local U.S. Markets." Journal of Finance 61(1): 437-61.
16. Chava, Sudheer, Alexander Oettl, Ajay Subramanian, and Krishnamurthy Subramanian. 2013. "Banking Deregulation and Innovation." Journal of Financial Economics 109(3): 759-74.
17. Chemmanur, Thomas J., Karthik Krishnan, and Debarshi K. Nandy. 2011. "How Does Venture Capital Financing Improve Efficiency in Private Firms? A Look beneath the Surface." Review of Financial Studies 24(12): 4037-90.
18. Cumming, Douglas. Forthcoming. "Measuring the Effect of Bankruptcy Laws on Entrepreneurship across Countries." Journal of Entrepreneurial Finance.
19. Da Rin, Marco, Thomas Hellmann, and Manju Puri. 2013. "A Survey of Venture Capital Research." Chap. 8 in Handbook of the Economics of Finance, Vol. 2, Part A, edited by George Constantinides, Milton Harris, and René M. Stulz. Amsterdam: North Holland.
20. Dosi, Giovanni, and Richard R. Nelson. 2010. "Technical Change and Industrial Dynamics as Evolutionary Processes." In Handbook of the Economics of Innovation, Vol. 1 edited by B. H. Hall and N. Rosenberg, 51-127. Amsterdam: North Holland.
21. Eberhart, Robert, Charles E. Eesley, and Kathleen M. Eisenhardt. 2013. "Failure is an Option: Failure Barriers and New Firm Performance." Stanford University Working Paper 111.
22. Ewens, Michael, Ramana Nanda, and Matthew Rhodes-Kropf. 2014. "Entrepreneurship and the Cost of Experimentation." Unpublished paper.
23. Fairlee, Robert W., Kanika Kapur, and Susan Gates. 2011. "Is Employer-based Health Insurance a Barrier to Entrepreneurship?" Journal of Health Economics 30(1): 146-62.
24. Fallick, Bruce, Charles A. Fleischman, and James Rebitzer. 2006. "Job-hopping in Silicon Valley: Some Evidence Concerning the Microfoundations of a High-Technology Cluster." Review of Economics and Statistics 88(3): 472-81.
25. Fehder, Daniel C., and Yael V. Hochberg. 2014. "Accelerators and the Regional Supply of Venture Capital Investment." Unpublished paper.
26. Fernandez, Jose-Maria, Roger M. Stein, and Andrew W. Lo. 2012. "Commercializing Biomedical Research through Securitization Techniques." Nature Biotechnology 30(10): 964-75.
27. Fleming, Lee. 2001. "Recombinant Uncertainty in Technological Search." Management Science 47(1): 117-32.
28. Fleming, Lee, and Olav Sorenson. 2004. "Science as a Map in Technological Search." Strategic Management Journal 25(5-9): 909-28.
29. Gans, Joshua, David H. Hsu, and Scott Stern. 2002. "When Does Start-up Innovation Spur the Gale of Creative Destruction?" RAND Journal of Economics 33(4): 571-86.
30. Glaeser, Edward L., Sari Pekkala Kerr, and William R. Kerr. Forthcoming. "Entrepreneurship and Urban Growth: An Empirical Assessment with Historical Mines." Review of Economics and Statistics.
31. Gompers, Paul A. 1995. "Optimal Investment, Monitoring, and the Staging of Venture Capital." Journal of Finance 50(5): 1461-89.
32. Gompers, Paul A. 1996. "Grandstanding in the Venture Capital Industry." Journal of Financial Economics 42(1): 133-56.
33. Gompers, Paul, and Josh Lerner. 2004. The Venture Capital Cycle. Cambridge, MA: MIT Press.
34. Graham, Paul. 2008. "A New Venture Animal." March, http://paulgraham.com/ycombinator.html.
35. Grenadier, Steven R., and Andrey Malenko. 2011. "Real Options Signaling Games with Applications to Corporate Finance." Review of Financial Studies 24(12): 3993-4036.
36. Hall, Robert E., and Susan E. Woodward. 2010. "The Burden of the Nondiversifiable Risk of Entrepreneurship." American Economic Review 100(3): 1163-94.
37. Haltiwanger, John, Ron S. Jarmin, and Javier Miranda. 2013. "Who Creates Jobs? Small versus Large versus Young." Review of Economics and Statistics 95(2): 347-61.
38. Hayek, Friedrich A. 1948. Individualism and Economic Order. University of Chicago Press.
39. Hellmann, Thomas, and Manju Puri. 2000. "The Interaction between Product Market and Financing Strategy: The Role of Venture Capital." Review of Financial Studies 13(4): 959-84.
40. Kaplan, Steven N., Berk A. Sensoy, and Per Strömberg. 2009. "Should Investors Bet on the Jockey or the Horse? Evidence from the Evolution of Firms from Early Business Plans to Public Companies." Journal of Finance 64(1): 75-115.
41. Kaplan, Steven N., and Per Strömberg. 2003. "Financial Contracting Theory Meets the Real World: An Empirical Analysis of Venture Capital." Review of Economic Studies 70(2): 281-315.
42. Kaplan, Steven N., and Per Strömberg. 2004. "Characteristics, Contracts, and Actions: Evidence from Venture Capitalist Analyses." Journal of Finance 59(5): 2177-2210.
43. Kerr, William R., Josh Lerner, and Antoinette Schoar. 2014. "The Consequences of Entrepreneurial Finance: Evidence from Angel Financings." Review of Financial Studies 27(1): 20-55.
44. Kerr, William R., and Ramana Nanda. 2009. "Democratizing Entry: Banking Deregulations, Financing Constraints, and Entrepreneurship." Journal of Financial Economics 94(1): 124-49.
45. Klapper, Leora F., Luc Laeven, and Raghuram G. Rajan. 2006. "Entry Regulation as a Barrier to Entrepreneurship." Journal of Financial Economics 82(3): 591-625.
46. Knight, Frank H. 1921. Risk, Uncertainty, and Profit. Boston, MA: Houghton Mifflin.
47. Kortum, Samuel S., and Josh Lerner. 2000. "Assessing the Contribution of Venture Capital to Innovation." RAND Journal of Economics 31(4): 674-92.
48. Khosla Ventures. No date. Company website mainpage, http://www.khoslaventures.com/ (accessed 5/14/14).
49. Khosla, Vinod. 2013. "Fail as Often as You Want, And Fail Well." Video of a speech posted March 10, 2013, at Wunderman Reports.com. http://www.wundermanreports.com/fail-as-often-as-you-want-and-fail-well.
50. Landier, Augustin. 2005. "Entrepreneurship and the Stigma of Failure." Unpublished paper.
51. La Porta, Rafael, Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert Vishny. 1997. "Legal Determinants of External Finance." Journal of Finance 52(3): 1131-50.
52. Lerner, Josh. 2009. Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed - And What to Do about It. Princeton University Press.
53. Lerner, Josh. 2012. The Architecture of Innovation: The Economics of Creative Organizations. Boston, MA: Harvard Business School Press.
54. Levere, Jane L. 2013. "Airbnb Campaign Uses Birdhouses to Widen Its Reach." New York Times, December 15. http://www.nytimes.com/2013/12/16/business/media/airbnb-campaign-uses-birdhouses-to-widen-its-reach.html.
55. Manso, Gustavo. 2011. "Motivating Innovation." Journal of Finance 66(5): 1823-69.
56. March, James G. 1991. "Exploration and Exploitation in Organizational Learning." Organizational Science 2(1): 71-87.
57. Michelacci, Claudio, and Javier Suarez. 2004. "Business Creation and the Stock Market." Review of Economic Studies 71(2): 459-81.
58. Nanda, Ramana, and Liz Kind. 2013. "AngelList." Harvard Business School Case 814-036.
59. Nanda, Ramana, and Matthew Rhodes-Kropf. 2010. "Financing Risk and Innovation." Harvard Business School Working Paper 11-013.
60. Nanda, Ramana, and Matthew Rhodes-Kropf. 2012. "Innovation and the Financial Guillotine." Harvard Business School Working Paper 13-038.
61. Nanda, Ramana, and Matthew Rhodes-Kropf. 2013. "Investment Cycles and Startup Innovation." Journal of Financial Economics 110(2): 403-18.
62. Nanda, Ramana, Ken Younge, and Lee Fleming. Forthcoming. "Innovation and Entrepreneurship in Renewable Energy." In The Changing Frontier: Rethinking Science and Innovation Policy edited by Adam Jaffe and Ben Jones. National Bureau of Economic Research.
63. Office of Advocacy, US Small Business Association. 2013. Small Business Lending in the United States 2012. http://www.sba.gov/sites/default/files/files/sbl-12study.pdf.
64. Palmer, Maija. 2012. "Cloud Computing Cuts Start-up Costs." Financial Times, February 29.
65. Parker, Simon C. 2004. "The Economics of Self-Employment and Entrepreneurship." Cambridge University Press.
66. Puri, Manju, and Rebeca Zarutskie. 2012. "On the Lifecycle Dynamics of Venture-Capital- and Non-Venture-Capital-Financed Firms." Journal of Finance 67(6): 2247-93.
67. Qian, Yingyi, and Chenggang Xu. 1998. "Innovation and Bureaucracy under Soft and Hard Budget Constraints." Review of Economic Studies 65(1): 151-64.
68. Rajan, Raghuram G. 2012. "Presidential Address: The Corporation in Finance." Journal of Finance 67(4): 1173-1217.
69. Ries, Eric. 2011. The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. Crown Business Publishing.
70. Ritter, Jay R. 2014. "Initial Public Offerings: Updated Statistics."
71. Robb, Alicia M., and David T. Robinson. 2014. "The Capital Structure Decisions of New Firms." Review of Financial Studies 27(1): 153-79.
72. Rosenberg, Nathan. 1994. "Economic Experiments." In Chap. 5 in Exploring the Black Box: Technology, Economics, and History. Cambridge University Press.
73. Sahlman, William A. 1990. "The Structure and Governance of Venture-Capital Organizations." Journal of Financial Economics 27(2): 473-521.
74. Sahlman, William A. 2010. "Risk and Reward in Venture Capital." Harvard Business School Background Note 811-036.
75. Sahlman, William, Ramana Nanda, Joseph B. Lassiter III, and James McQuade. 2012. "Terra-Power." Harvard Business School Case Study 813-108.
76. Saint-Paul, Gilles. 2002. "Employment Protection, International Specialization, and Innovation." European Economic Review 46(2): 375-95.
77. Samaniego, Roberto M. 2006. "Employment Protection and High-Tech Aversion." Review of Economic Dynamics 9(2): 224-41.
78. Samila, Sampsa, and Olav Sorenson. 2011. "Venture Capital, Entrepreneurship and Economic Growth." Review of Economics and Statistics 93(1): 338-49.
79. Scherer, F. M., and Dietmar Harhoff. 2000. "Technology Policy for a World of Skew-distributed Outcomes." Research Policy 29(4-5): 559-66.
80. Schumpeter, Joseph. 1911 [1934]. The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest and the Business Cycle. Cambridge, MA: Harvard University Press.
81. Schumpeter, Joseph. 1943. Capitalism, Socialism, and Democracy. Harper Brothers, New York, NY.
82. Shane, Scott A. 2009. Fool's Gold? The Truth behind Angel Investing in America. Oxford University Press.
83. Stern, Scott. 2005. "Economic Experiments: The Role of Entrepreneurship in Economic Prosperity." In Understanding Entrepreneurship: A Research and Policy Report, edited by Carl J. Schramm, 16-20. Ewing Marion Kauffman Foundation.
84. Thomke, Stefan H. 2003. Experimentation Matters: Unlocking the Potential of New Technologies for Innovation. Boston, MA: Harvard Business School Press.
85. Tian, Xuan. 2011. "The Causes and Consequences of Venture Capital Stage Financing." Journal of Financial Economics 101(1): 132-59.
86. Weitzman, Martin. 1979. "Optimal Search for the Best Alternative." Econometrica 47(3): 641-54.
87. Wilson, Fred. 2011. "Airbnb." March 16. http://www.avc.com/a-vc/2011/03/airbnb.html.