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

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

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

opportunities exist because different people possess different information’.

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.

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

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

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