Please use this identifier to cite or link to this item:
|Title:||R&D profitability: the role of risk and Knightian uncertainty|
|Authors:||AMOROSO SARA; MONCADA PATERNO' CASTELLO Pietro; VEZZANI ANTONIO|
|Citation:||SMALL BUSINESS ECONOMICS vol. 48 no. 2 p. 331-343|
|Type:||Articles in periodicals and books|
|Abstract:||This paper provides the first empirical attempt of linking firms’ profits and investment in R&D revisiting Knight’s (Risk, uncertainty and profit, Hart, Schaffner & Marx, Boston, 1921) distinction between uncertainty and risk. Along with the risky profit-maximising scenario, identifying a second, off-setting, unpredictable bias that leads to heterogeneous returns to R&D investments is crucial to fully understand the drivers of corporate profits. Consistently with the Knightian theory that relates risk to profitability, we model the impact of risk and uncertainty on profits and provide a first empirical attempt to model the effect of ambiguity, a particular type of uncertainty, on R&D returns.|
|JRC Directorate:||Growth and Innovation|
Files in This Item:
There are no files associated with this item.
Items in repository are protected by copyright, with all rights reserved, unless otherwise indicated.