Resource allocation decisions play a dominant role in shaping a firm’s technological trajectory and competitive advantage. Recent work indicates that innovative firms and scientific institutions tend to exhibit an anti-novelty bias when evaluating new projects and ideas. In this paper, we focus on shedding light into this observed pattern by examining how evaluator expertise in the problem’s focal domain shapes the relationship between novelty and feasibility in evaluations of quality for technical solutions.
IGL Trials Database
IGL curates a database with randomised controlled trials in the field of innovation, entrepreneurship and growth. Browse our list of topics, see it as a map, or use the search function below.
2022
This lab-in-the-field experiment will measure the gender bias in entrepreneurship and investment among youth and credit officers in Ethiopia. Chigign Tobiya “Ethiopia Emerges” is a television show in Ethiopia where entrepreneurs pitch their business ideas to a panel of business tycoons for a chance to get investment funding.
2022
The federal government and many individual organizations have invested in programs to support diversity in the STEM pipeline, including STEM summer programs for high school students, but there is little rigorous evidence of their efficacy. We fielded a randomized controlled trial to study a suite of such programs targeted to underrepresented high school students at an elite, technical institution. The STEM summer programs differ in their length (one week, six weeks, or six months) and modality (on-site or online).
2022
Women are underrepresented in patenting and the gap is not closing quickly. One major roadblock to progress is a dearth of causal evidence on the potential effectiveness of policies to reduce the gender gap in patenting. Analyzing a randomized control trial at the United States Patent and Trademark Office that was designed to provide additional help to applicants who do not have legal representation, we find heterogeneous causal impacts across gender and technologies on the probability of obtaining patent rights.
2022
By enabling smaller loans, broader geographic reach, and less human bias in decision-making, process automation may reduce racial disparities in access to financial services. We find evidence for all three channels in a setting where private lenders faced no credit risk but decided who to serve: the Paycheck Protection Program (PPP), which provided loans to small businesses during COVID-19. Black-owned firms disproportionately obtained their PPP loans from fintech lenders, especially in areas with high racial animus.
2022
Using a new survey of firms in New Zealand, we document how exogenous variation in the macroeconomic uncertainty perceived by firms affects their economic decisions. We use randomized information treatments that provide different types of information about the first and/or second moments of future economic growth to generate exogenous changes in the perceived macroeconomic uncertainty of some firms. The effects on their decisions relative to their initial plans as well as relative to an untreated control group are measured in a follow-up survey six months later.
2022
This paper studies whether informational frictions prevent firms from accessing government support using a randomised controlled trial. We focus on two Portuguese COVID-19 relief programs, providing (i) wage support for workers who are kept on payroll and (ii) credit lines backed by government guarantees. We randomly assign firms to a treatment providing either simplified information about a program, or a combination information and step-by-step application support. We find a significant treatment effect on take up of the wage support program.
2022
We analyze, benchmark, and run randomized controlled trials on a panel of 7,463 U.S. entrepreneurs making incentivized sales forecasts. We assess accuracy using a novel administrative dataset obtained in collaboration with a leading US payment processing firm. At baseline, only 13% of entrepreneurs can forecast their firm’s sales in the next three months within 10% of the realized value, with 7.3% of the mean squared error attributable to bias and the remaining 92.7% attributable to noise.
2022
This project is a collaboration with Corner to Corner to study the impact of their entrepreneurship training course on financial stability. Corner to Corner, a Nashville-based nonprofit, is focused on their mission of helping their neighbors to flourish and addressing the racial wealth gap. One of their primary programs is The Academy, a 10-week entrepreneurship training course that teaches students the fundamentals of starting and operating their own business.
2022
Microcredit promised business growth for small firms lacking access to banking loans. Although microcredit has reached millions, recent randomized evaluations find limited average business impacts. Critics often blame contract rigidity, specifically the fixed and frequent installments, for the lack of productive risk-taking. But such rigidity may instill borrower discipline. This study partnered with a Colombian lender that offered first-time borrowers a flexible loan that permitted delaying up to three monthly repayments.
2022
Climate change poses an urgent and existential threat to the wine sector. However, it is not easy for wineries and farmers to take action to reduce carbon emission comparing to adaptation. How can we encourage these actions? Farmers often seek information before take action, which influences their current risk perceptions of extreme weather condition or moral norms. Regarding the information, a positive approach focusing on empowering farmers to take action to address climate change is generally more successful at engaging people and minimizing defensive reactions.
2022
The ‘Evolve Digital’ trial was developed with the objective of boosting digital adoption in small family firms through identifying a cost-effective, yet productivity-enhancing programme of peer group learning for small family businesses, which can be replicated throughout the country.
2022
This paper tests whether providing more information on business practices can lead firms to seek out advice and improve their practices. The authors collaborated with a business advice provider in Brazil to implement a randomized experiment with 866 small firms. The treatment groups received different versions of an information sheet that benchmarked business practices to other firms and listed five practices to improve.
2022
The study investigates the role of information constraints and behavioral biases in the under-adoption of key business practices by micro-enterprises in Brazil. We combine a randomized control trial with online surveys to study these questions.
2021
A randomised controlled trial has been performed in which 580 randomly selected pupils (aged 14-15) have been randomly assigned to participate in online programmes that focus either on entrepreneurship or on environmental issues. . The short-term results show that the programme focusing on entrepreneurship had a significantly positive influence on the participants’ entrepreneurial intentions, venture creation self-efficacy, entrepreneurial attitudes and perceived knowledge about entrepreneurship
2021
This paper studies the impact of business modernization on the sales performance of traditional retailers. We define modernization as adopting tangible structures and business practices of organized retail chains (for example, exterior signage with store name and logo, or a database to record product-level information). To address our research question, we implement a randomized field experiment in Mexico City with 1148 traditional retail firms.
2021
We experimentally study the impact of substantially larger enterprise loans, in collaboration with an Egyptian lender. Larger loans generate small average impacts, but machine learning using psychometric data reveals dramatic heterogeneity. Top-performers (i.e., those with the highest predicted treatment effects) substantially increase profits, whereas profits for poor-performers drop. The magnitude of this difference implies that an individual lender’s credit allocation choices matter for aggregate income.
2021
This study asks why more small firms in developing countries do not use the market for professional business services like accounting, marketing, and human resource specialists and asks how this could be altered.
2021
This trial measures the impact of an edutainment program specifically designed to promote entrepreneurship among young adult viewers in Egypt.
2021
This randomised experiment tested the impact of exogenously inducing higher financial aspirations among poor entrepreneurs.
2021
This experiment tests the impact of a program with the main goal of helping firms to attract new customers, expand markets, adapt their business model, and bounce back from the COVID-19 pandemic by boosting demand for their products.
2021
This paper studies the role of diversity and performance in the entrepreneurial teams.
2021
Prior research suggests that firms in entrepreneurial settings benefit from a scientific approach to decision making that combines cognitive and evidence-based components. But to what extent and under what conditions is the scientific approach to decision-making associated with superior performance?
2021
Do capital grants improve microenterprise productivity? We use the lens of a production function to re-examine two previous randomised controlled trials that allocated capital to microenterprises. We find that productivity is higher for treated firms, and accounts for about 20-30 percent of the revenue effects of capital grants. Although long-run estimates are noisy, point estimates indicate that these productivity effects are sustained six years after the grants.
2021
This project evaluated the impact of a program aiming to improve the workplace climate in corporations.
2021
The model shows that managers and entrepreneurs make better decisions under uncertainty if they adopt a scientific approach in which they formulate and test theories.
2021
This paper studies the medium-term impacts of the Skills for Effective Entrepreneurship Development (SEED) program, an innovative in-residence 3-week mini-MBA program for high school students modeled after western business school curricula and adapted to the Ugandan context.
2021
This project aims to understand the determinants of adoption of a new technology by firms in Bangladesh's leather goods and footwear industry.
2021
This study assesses, via a field experiment, how a comprehensive teacher training program affects the delivery of a major entrepreneurship curriculum reform in Rwanda. The reform introduced interactive pedagogy and a focus on business skills in the country’s required upper secondary entrepreneurship course. Both groups received the government’s standard training. In addition, the treatment group was assigned intensive training organized by an NGO for two years.
2020
This trial investigates the best way to help agents perform better, as firms providing products and services to low income Base of the Pyramid (BOP) customers are increasingly utilizing independent contractor agents rather than employees in their distribution models.