Timing of incentives in crowdfunding

Patents, prizes, government grants, and R&D tax incentives are ways to reward and incentivize innovation. One of the ways in which these schemes differ is the timing of the reward. Patent holders are rewarded after the product is developed and patented over the course of 20 years (length of the patent) but only if the product is commercialized (since rents are earned from the market). Prize-winners are awarded according to the competition rules.. Read More

Does crowdfunding result in good product development decisions?

Just as our hourly mood statuses (www.twitter.com), tedious errands (www.taskrabbit.com), and restaurant conundrums (www.yelp.com) have been progressively fulfilled and/or publicized by various social technology platforms, the want of capital has also turned to social networks sprawled across the internet as an alternative to the traditional financing entities. Crowdfunding, most popularly embodied by Kickstarter, leverages small contributions from the masses to finance various projects. While it generates the most traffic in the creative arts.. Read More