Entrepreneurs face higher commercialization costs than incumbents. We show that this implies that entrepreneurs will …, entrepreneurs may select too safe projects from a social point of view, since they do not internalize the business stealing effect … inducing entrepreneurs to choose less risky projects, whereas R&D support encourages entrepreneurship without affecting the …

If control of their firms allows entrepreneurs to derive private benefits, it also allows other controlling parties … and analyze entrepreneurs' financing strategy between the two. We find that, in all strict Nash Equilibria, entrepreneurs … who value private benefits more choose banks while the rest choose venture capital. Thus, bank-financed entrepreneurs …