From market failures to market opportunities: managing innovation under asymmetric information - Journal of Innovation and Entrepreneurship

'the poorer the information is, the greater the number and scope of entrepreneurial opportunities’

strategic disclosure of private information is likely to mitigate the effects of information asymmetries 

consider that information asymmetry, far from being a source of market failures, is a condition for market opportunities to emerge. In this view, opportunities exist only because individuals do not possess substitutable information sets (either complete or incomplete) regarding market forces and technology.

opportunities exist because different people possess different information’.

The free rider effect appears when the winner firm of an R&D race is not capable of appropriating the full revenue of its innovation

doing 'three things well:1.Discover the asymmetries (…) and discern the potential between them.2.Turn asymmetries into capabilities by strategically embedding them within an organizational design configuration that exploits them and sustains their development.3.Match asymmetry-derived capabilities to market opportunities’ (Miller 2003), p. 965

w information asymmetries regarding realisation costs at each step influence the choice of the fittest organisational mode.

the context of capital markets for R&D, information asymmetry between entrepreneurs and investors creates market failures (e.g. credit rationing) that call for efficient contractual arrangements to mitigate its negative effects.