Found 21 article(s) for author 'Ramana Nanda'

Financing Entrepreneurial Experimentation

Financing Entrepreneurial Experimentation. Ramana Nanda, Matthew Rhodes-Kropf, June 2015, Paper, “The fundamental uncertainty of new technologies at their earliest stages implies that it is virtually impossible to know the true potential of a venture without learning about its viability through a sequence of investments over time. We show how this process of experimentation can be particularly valuable in the context of entrepreneurship because most new ventures fail completely, and only a few become extremely successful. We also shed light on important costs to this process of experimentation…Link

Tags: , , , ,

Financing Innovation

Financing Innovation. William R. Kerr, Ramana Nanda, November 2014, Paper. “We review the recent literature on the financing of innovation, inclusive of large companies and new startups. This research strand has been very active over the past five years, generating important new findings, questioning some long-held beliefs, and creating its own puzzles. Our review outlines the growing body of work that documents a role for debt financing related to innovation. We highlight the new literature on learning and experimentation across multi-stage innovation projects and how this impacts optimal financing design…” Link

Tags: , , ,

House Money and Entrepreneurship

House Money and Entrepreneurship. William R. Kerr, Ramana Nanda. September 24, 2014, Paper. “We examine the relationship between house prices and entrepreneurship using microdata from the US Census Bureau. Increases in house prices are often thought to drive entrepreneurship through unlocking the collateral channel for bank loans, but this interpretation is challenged by worries regarding omitted variable biases (e.g., rising local demand) or wealth effects (i.e., that wealthier people are more likely to enter entrepreneurship for reasons other than access to collateral)…” Link

Tags: , , ,

Financial Development and Technology Diffusion

Financial Development and Technology Diffusion. Ramana Nanda, September 2014, Paper. “We examine the extent to which financial market development impacts the diffusion of 16 major technologies, looking across 55 countries, from 1870 to 2000. We find that greater depth in financial markets leads to faster technology diffusion for more capital-intensive technologies, but only in periods closer to the invention of new technologies. In fact, we find no differential effect of financial depth on the diffusion of capital-intensive technologies in the late stages of diffusion or in late adopters…” Link

Tags: , ,

Seeking the Roots of Entrepreneurship: Insights from Behavioral Economics

Seeking the Roots of Entrepreneurship: Insights from Behavioral Economics. Ramana Nanda , Summer 2014, Paper. “There is a growing body of evidence that many entrepreneurs seem to enter and persist in entrepreneurship despite earning low risk-adjusted returns. This has lead to attempts to provide explanations—using both standard economic theory and behavioral economics—for why certain individuals may be attracted to such an apparently unprofitable activity. Drawing on research in behavioral economics, in the sections that follow, we review three sets of possible interpretations for understanding the empirical facts related to the entry into…” Link

Tags: , ,

Entrepreneurship as Experimentation

Entrepreneurship as Experimentation. William R. Kerr, Ramana Nanda, Matthew Rhodes-Kropf, Summer 2014, Paper. “Entrepreneurship research is on the rise, but many questions about its fundamental nature still exist. We argue that entrepreneurship is about experimentation: the probabilities of success are low, extremely skewed, and unknowable until an investment is made. At a macro level, experimentation by new firms underlies the Schumpeterian notion of creative destruction. However, at a micro level, investment and continuation decisions are not always made in a competitive Darwinian contest…” Link

Tags: , , , , , ,

Investment Cycles and Startup Innovation

Investment Cycles and Startup Innovation. Ramana Nanda, Matthew Rhodes-Kropf, November 2013, Paper. “We find that VC-backed firms receiving their initial investment in hot markets are more likely to go bankrupt, but conditional on going public are valued higher on the day of their IPO, have more patents, and have more citations to their patents. Our results suggest that VCs invest in riskier and more innovative startups in hot markets (rather than just worse firms). This is true even for the most experienced VCs. Furthermore, our results suggest that the flood of capital in hot markets also plays a causal role in…” Link

Tags: , , , , , ,

Did Bank Distress Stifle Innovation During the Great Depression?

Did Bank Distress Stifle Innovation During the Great Depression? Ramana Nanda, Tom Nicholas, October 2013, Paper. “We find a negative relationship between bank distress and the level, quality, and trajectory of firm-level innovation during the Great Depression, particularly for R&D firms operating in capital intensive industries. However, we also show that because a sufficient number of R&D intensive firms were located in counties with lower levels of bank distress, or were operating in less capital intensive industries, the negative effects were mitigated in aggregate…” Link

Tags: , , , , , , , ,

Innovation and Entrepreneurship in Renewable Energy

Innovation and Entrepreneurship in Renewable Energy. Ramana Nanda, October 2013, Book Chapter. “We document three facts related to innovation and entrepreneurship in renewable energy. Using data from the U.S. Patent and Trademark Office, we first show that patenting in renewable energy remains highly concentrated in a few large energy firms. In 2009, the top 20 firms accounted for over 40% of renewable energy patents in our data. Second, we compare patenting by venture-backed startups and incumbent firms. Using a variety of measures, we find that VC-backed startups are engaged in more novel and…” Link

Tags: , ,

Financing Entrepreneurial Growth

Financing Entrepreneurial Growth. Ramana Nanda, Jeremy Lerner, February 5, 2013, Opinion. “Despite recent innovations in entrepreneurial finance, particularly at the early stage of business creation, many new and young companies continue to face hurdles to acquire capital. The Kauffman Foundation addressed current challenges and opportunities in financing entrepreneurial growth, a key driver of job creation and economic expansion, at its fourth annual State of Entrepreneurship Address on February 5, 2013. The event featured remarks from Small Business Administrator Karen Mills…” May require purchase or user account. Link

Tags: , , , , , , , , , , , , , , , , ,