L3 & L4

Question 1

Why expect underinvestment in risky activities?

Answer 1

Separating innovation and risk creates moral hazard problem
Investors will force innovators to participate in risk taking because of information asymmetry
Innovator might need to hold more shares in project than he/she wanted and therefore unwilling to take the project at all

Question 2

Paradox in demand for information

Answer 2

Value is not known until the information is read
But reading the information means it did not cost anything
->Market for information is really difficult

Question 3

Market failure in innovation

Answer 3

if rely on private actors that seek profit to introduce new technology it may take very long

Question 4

Triple helix

Answer 4

Innovation require three parties

Companies, universities and government

Question 5

Third mission of university

Answer 5

Connecting to society

Question 6

Why is it dangerous for universities to think too much in terms of markets?

Answer 6

• Skewing problem = focus on short term projects to get economic returns
• Secrecy problem = stop sharing knowledge because of commercial interest ->less publication
• Corporate manipulation thesis = not neutral science anymore, write what companies want

Question 7

Why do researches that work with firms publish more?

Answer 7

It brings additional funding for the projects and this enlarge the research group which increase publishing
New perspectives through interaction with firms
(or selection effect)