Science funding agencies such as the NIH, NSF, and their counterparts around the world are often criticized for being too conservative, funding incremental innovations over more radical but riskier projects. One explanation for their conservatism is the way the agencies use peer review of scientific proposals. Peer review is the cornerstone of research allocation decisions, but agencies typically base decisions on a simple average of peer review scores. More novel ideas are less likely to gain consistently high ratings across evaluators and are less likely to be funded.
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.
An RCT was used to investigate the effectiveness of an innovation support scheme (ISS) for SMEs in tackling age diversity challenges. The ISS included leadership training aimed at fostering team climate and valuing age diversity, and computer-based cognitive training for employees. Levels of recruitment into the trial, engagement in the interventions and response rates to surveys were lower than anticipated, which have all limited the potential to identify the impacts of the interventions.
There is a growing belief that scalable and low-cost AI assistance can improve firm decision-making and economic performance. However, running a business involves a myriad of open-ended problems, making it hard to generalize from recent studies showing that generative AI improves performance on well-definedwriting tasks. In our field experiment with 640 Kenyan entrepreneurs, we assessed the impact of AI-generated advice on small business revenues and profits.
Measuring the returns of advertising opportunities continues to be a challenge for many businesses. We design and run a field experiment in collaboration with Yelp across 18,294 firms in the restaurant industry to understand which types of businesses gain more from digital advertising. We randomly assign 7,209 restaurants to freely receive Yelp’s standard ads package for three months. The scale of the experiment gives us a unique opportunity to assess the heterogeneity in advertising effectiveness across a variety of business attributes.
Effective workplace management plays a crucial role in determining employee performance, retention, and subsequently, overall firm performance. While conventional management strategies often emphasize hierarchical relationships, peer-to-peer management, or "managing across," represents a promising yet largely unexplored approach. This study aims to investigate the impact of peer-to-peer management training on various employee outcomes and identify the conditions under which the intervention proves most effective.
Understanding how to design policies to effectively reduce firm-level carbon emissions while minimizing impacts on economic growth is a question of central importance in the battle to mitigate climate change. The EU is proposing a Carbon Border Adjustment Mechanism (CBAM) that will tax imports to better reflect their carbon content. This project evaluates three policies that provide firms with training and assistance obtaining loans with the goal of mitigating the impacts of CBAM on Turkish SMEs.
Whose problems do investors see as worth solving? I experimentally study how investors evaluate a startup idea based on the socioeconomic background of the founder, the target customer, and the (in)congruence between the two. I am also interested in how the socioeconomic background of investors themselves affect these evaluations. I aim to contribute to the research on diversity and inequality in entrepreneurial funding in which socioeconomic backgrounds have been relatively understudied.
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.
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.
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.
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.
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.
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.
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.
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.
Differences in management quality are an important contributor to productivity differences across countries. A key question is then how to best improve poor management in developing countries. We test two different approaches to improving management in Colombian auto parts firms. The first uses intensive and expensive one-on-one consulting, while the second draws on agricultural extension approaches to provide consulting to small groups of firms at approximately one-third of the cost of the individual approach.
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.
Interference across competing firms in RCTs can be informative about market structure. An experiment that subsidizes a random subset of traders who buy cocoa from farmers in Sierra Leone illustrates this idea. Interpreting treatment-control differences in prices and quantities purchased from farmers through a model of Cournot competition reveals differentiation between traders is low. Combining this result with quasi-experimental variation in world prices shows that the number of traders competing is 50 percent higher than the number operating in a village.
We examine the influence of physical proximity on between-startup knowledge spillovers at one of the largest technology co-working hubs in the United States. Relying on the random assignment of office space to the hub's 251 startups, we find that proximity positively influences knowledge spillovers as proxied by the likelihood of adopting an upstream web technology already used by a peer startup.
Across developing economies, cash is the conduit for retail transactions. Policymakers, multinational product manufacturers and marketers of electronic payment systems are interested in understanding how to stimulate the growth of electronic payments in emerging markets. In this paper, we investigate what hinders the adoption of e-payment technology by traditional retailers, in particular, whether barriers to adoption are technological, informational or financial in nature.
. A randomized experiment is conducted a in Nigeria to test the relative effectiveness of these different approaches in improving business practices.
Psychological safety (PsyS) is an important driver of teams’ performance and organizations are keen to foster it. However, there is little causal evidence on what drives it and how to increase it. This paper implements a randomized control trial with over 1000 teams (over 7000 employees) in a global healthcare company to evaluate the impact of individualized attention of the manager to each team member team by encouraging managers to hold frequent 1-to-1 meetings and to focus them on mechanisms expected to increase PsyS.
This study analyses a field experiment conducted on AngelList Talent, a large online search platform for startup jobs.
We examine the influence of physical proximity on between-startup knowledge spillovers at one of the largest technology co-working hubs in the United States. Relying on the random assignment of office space to the hub's 251 startups, we find that proximity positively influences knowledge spillovers as proxied by the likelihood of adopting an upstream web technology already used by a peer startup.
A randomized control trial with 945 entrepreneurs in Jamaica shows positive shortterm impacts of soft-skills training on business outcomes. The effects are concentrated among men, and disappear twelve months after the training.
This experiment tries to understand how managers respond to uncertainty when making research and development decisions. Three experiments were conducted with master’s degree students in a program focused on the intersection of business and technology.
We seek to understand what is limiting women's access to finance, in particular for highly skilled start-up entrepreneurs. To investigate supply side constraints, we run a lab-in-the-field experiment in which loan officers in Uganda evaluate several business ideas based on real pitch decks from start-ups. We separate biases in idea evaluation from other constraints (such as gender specific differences in the ability to implement a project, or in external constraints that start-up entrepreneurs are facing).
This impact evaluation aims to measure the effect of a program that combines business training, mentoring, and a large cash transfer on high-potential small and medium businesses in Chile. 250 out of the top 500 firms participating in a business plan competition will be randomly selected to receive all three components of the program, while the remaining firms will receive none of them.
We study the demand for government participation in China’s venture capital and private equity market. We conduct a large-scale, non-deceptive field experiment in collaboration with the leading industry service provider, through which we survey both sides of the market: the capital investors and the private firms managing the invested capital by deploying it to high-growth entrepreneurs. Our respondents together account for nearly $1 trillion in assets under management.
What is preventing entrepreneurs and managers from forming peer connections themselves? This paper argues that entrepreneurs may be under-networked because they lack the necessary social skills that allow them to match efficiently with knowledgeable peers.