What do organizations think are their risks and uncertainties? Risk self-assessments within securities reports as a new source for entrepreneurship, innovation and technology research

Abstract

One of the major complexities of innovation as well as entrepreneurship and technological change processes is that larger or lesser financial and non-financial risks and uncertainties are parts of these processes, since the courses as well as outcomes of the processes are not known in beforehand. Assuming that managers and employees within entrepreneurship, innovation and technology firms are themselves concerned about this aspect of their businesses, it becomes pertinent for researchers to gain an understanding of what their perceptions regarding risks and uncertainties are. Relevant research designs could include e.g. surveys or interviews, whereas this chapter focuses on a possible supplementary approach consisting in using the securities reports submitted to the authorities as a new kind of source for relevant information. The chapter makes use of illustrative quotes from the sections in the securities reports of four biotechnology companies located in the USA and Japan, countries where self-assessments regarding risks the company is facing was made mandatory from 2005 and 2004 respectively. The chapter also includes a section with some suggestions as for how this new source may be utilized within future entrepreneurship, innovation and technology research, and concludes with stating that there are significant promises in connection with using the source, although there are also some challenges.