Latest questions:
Trending questions:
Hot questions:
Behavioral Economics and Change
1 answer
As far as Behavioral Economics and Neuro-Economics apply to tolerance of ambiguity and willingness to change, I would turn your very current and important question around to best answer your question. In my view, the pace of technology is being held back by the lack of a sufficiently well-trained infrastructure that is flexible enough to advance to the rapid Schupetarian type of “Creative Destruction”. The public is constantly reacting to the S & T media announcements that may be paralyzing many an otherwise startup entrepreneur, since the lead time needed to secure a sufficient level of confidence, appears shorter than the most optimistic payback period for setting up a new product line or service.
Under these circumstances, the initiation of new projects must be forcing the smaller and middle-sized firms to turn to Venture Capitalists, who may find that the type of projects that they would risk their investments 5 and 10 years ago to have now become too risky to pursue.
Thus, it would appear that such high-risk and uncertain innovations’ funding may default to government subsidized support. Thus, there is obviously a Global Race on now for the U.S. to try and maintain its traditional lead while China, Japan, India, Russia, South Korea and others are taking greater investment risks in S & T with the goal in mind of knocking the U.S. out of its lead. The U.S. lead is now seriously questioned as American entrepreneurs avoid taking on greater financial risks.