Publication:
Resource Reallocation and Innovation : Converting Enterprise Risks into Opportunities

dc.contributor.author Dutz, Mark A.
dc.date.accessioned 2013-09-26T20:33:56Z
dc.date.available 2013-09-26T20:33:56Z
dc.date.issued 2013-07
dc.description.abstract This paper argues that the increased flow and management of knowledge permitted by knowledge-based capital, supported by appropriate policies, can be an important factor in reducing the decision risk facing enterprises due to uncertainty and imperfect information, helping improve the resilience of development outcomes. Enterprises are conceptualized as information platforms that manage risk through investments in knowledge-based capital and complementary assets, providing them with the knowledge, protection/enabling, insurance, and coping/leveraging abilities to make better decisions in response to shocks. Investments in knowledge-based capital allow enterprises to better convert voluntary but risky reallocation and innovation decisions into productivity and wealth-enhancing opportunities. They can help the enterprise sector as a whole and most people to self-protect and realize better jobs, earnings, and consumption outcomes by adapting to shocks. However, absent appropriate policies, knowledge-based capital can have adverse distributional effects -- including a skewed industrial concentration of productivity gains and more unequal consumption and income-earning outcomes between rich and poor people. The paper discusses the role of policy in facilitating risk management by enterprises, ultimately to reduce poverty and boost shared prosperity. Insufficient enterprise risk-taking is costly for the enterprise sector and the economy as it results in too little experimentation and learning. The paper argues that governments should create business environments that stimulate entrepreneurial risk-taking to invest in market and social opportunities that combine new technologies with appropriately-skilled workers. Policies allowing people to better confront and manage their risks include: (1) spurring entrepreneurial experimentation; (2) supporting skills upgrading; and (3) promoting mechanisms for joint learning through global collaboration. en
dc.identifier http://documents.worldbank.org/curated/en/2013/07/18015946/resource-reallocation-innovation-converting-enterprise-risks-opportunities
dc.identifier.uri http://hdl.handle.net/10986/15892
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 6534
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject ENTERPRISE SECTOR
dc.subject ENTREPRENEUR EXPERIMENTATION
dc.subject GLOBAL COLLABORATION
dc.subject INNOVATION
dc.subject JOBS
dc.subject KNOWLEDGE-BASED CAPITAL
dc.subject POVERTY REDUCTION
dc.subject RISK MANAGEMENT
dc.subject SHARED PROSPERITY
dc.subject SHOCKS
dc.subject UPGRADING SKILLS
dc.title Resource Reallocation and Innovation : Converting Enterprise Risks into Opportunities en
dspace.entity.type Publication
okr.crosscuttingsolutionarea Jobs
okr.date.disclosure 2013-07-01
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2013/07/18015946/resource-reallocation-innovation-converting-enterprise-risks-opportunities
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Social Protection and Labor
okr.globalpractice Environment and Natural Resources
okr.globalpractice Finance and Markets
okr.globalpractice Transport and ICT
okr.globalpractice Trade and Competitiveness
okr.identifier.doi 10.1596/1813-9450-6534
okr.identifier.externaldocumentum 000158349_20130717093058
okr.identifier.internaldocumentum 18015946
okr.identifier.report WPS6534
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/07/17/000158349_20130717093058/Rendered/PDF/WPS6534.pdf en
okr.topic Private Sector Development :: E-Business
okr.topic Social Protections and Labor :: Labor Policies
okr.topic Finance and Financial Sector Development :: Debt Markets
okr.topic Economic Theory and Research
okr.topic Environmental Economics and Policies
okr.topic Macroeconomics and Economic Growth
okr.topic Environment
okr.unit Economic Policy and Debt Department, Poverty Reduction and Economic Management Network
okr.volume 1 of 1
relation.isAuthorOfPublication 2939efe1-3653-5554-bb5b-89bf213ca445
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
English PDF
Size:
604.03 KB
Format:
Adobe Portable Document Format
Description:
No Thumbnail Available
Name:
English Text
Size:
162.7 KB
Format:
Plain Text
Description:
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description: