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Sensitivity of new industrial product risk to R&D incentives
Author(s) -
More Roger A.
Publication year - 1983
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.1983.tb01134.x
Subject(s) - incentive , product (mathematics) , business , government (linguistics) , sensitivity (control systems) , new product development , industrial organization , public economics , marketing , microeconomics , economics , engineering , linguistics , philosophy , geometry , mathematics , electronic engineering
Incentives for research and development have frequently been a feature of government policy to increase the level or alter the direction of new product development activity in industrial product companies. Conceptually, these incentives may be viewed as “risk‐modifiers they may encourage managers to undertake innovation projects where the potential payoffs may be attractive, but where some dimensions of risk are perceived as too high to proceed. This research explores the sensitivity of different dimensions of risk faced by managers to incentives of different kinds, at different levels. Implications are cited for different types of R&D incentives aimed at these different dimensionsof risk.