Taking Technical Risks ― How Innovators, Executives, and Investors Manage High-Tech Risks

How do technology innovators, business executives, and venture capitalists manage thetechnical elements of business risk when developing and launching new products? Overcoming technicalrisks requires crossing the so-called valley of death--the gap between demonstrating the soundnessof a technical concept in a controlled setting and readying the product technology for the market.Crossing the valley of death may mean bringing university-based research to the point where itappears viable to venture capitalists, or bridging the cultural gap between technical innovators andthe managers who are being asked to risk their institutional resources. In every context, purelytechnical risks are coupled with the market risks inherent in innovation.In this book LewisBranscomb and Philip Auerswald address early-stage, high-tech innovation in the context of businessdecision making and innovation policy. The topics addressed include the extent to which purelytechnical risk is separable from market risk; how industrial managers make decisions on fundingearly-stage, high-risk technology projects; and under what circumstances government can and shouldact to reduce the technical risks of innovative projects so that firms will invest in them. The bookincludes contributions by Mary Good, George Hartmann, James McGroddy, Mike Myers, Michael Roberts,and F. M. Scherer.

Philip Auerswald is Director of the Center for Science and Technology Policy and an Assistant Professor at the School of Public Policy at George Mason University. He is co-editor of Innovations: Technology Governance Globalization and author or co-author of numerous books, reports, and research papers, including Taking Technical Risk: How Innovators, Executives, and Investors Manage High-Tech Risks (MIT Press, 2001) and Seeds of Disaster, Roots of Response: How Private Action Can Reduce Public Vulnerability.