Overview
The main purpose of this project is to understand how parties' incentives to engage in innovation activities are affected by various institutional features. We apply theories of incentives under asymmetric information and imperfect enforcement to incentive problems characterized by risk taking, limited performance measurement and verifiability, dynamic learning, trade-off between exploration and exploitation, and the importance of information generation and communication. We then examine implications and applications for legal rules, institutions, social norms, regulations, corporate governance, organizational structures, and compensation systems in Japan.
July 8, 2013 - March 31, 2016
