An Exploratory Study of How Small Firms Estimate Potential Rent Returns from Investment in Innovation

TitleAn Exploratory Study of How Small Firms Estimate Potential Rent Returns from Investment in Innovation
Publication TypeConference Paper
Year of Publication2005
Tertiary AuthorsMazzarol, T, Reboud, S
Conference Name"Creating and Entrepreneurial Nation: The Role of Enterprise & Innovation", Entrepreneurship & Innovation Conference
PublisherUniversity of Waikato
Conference Location7-8 July, Hamilton New Zealand
Keywordsentrepreneurs, Innovation, risk assessment, small firms
Abstract

Conventional risk assessment models are financially based and often ignore the broader strategic and market risk that frequently faces the entrepreneur in a small innovative venture. This study outlines the findings of a survey of small, high innovator firms in Australia. Shortterm, capital intensive innovations were the most common type found, with most firms seeking to secure long-term sustainable returns from future investments in the same technology after its initial establishment in the market. Firms that reported possession of a formal, systematic approach to new product development or innovation were significantly more likely to generate superior innovations from a commercial perspective than did their counterparts without such systems.

URL../../sites/all/publications/E&IMAZZREBOUD.pdf
Refereed DesignationRefereed