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When and to what extent failure‑tolerant incentives increase scientific risk‑taking

Determine the extent and delineate the conditions under which failure‑tolerant incentive schemes that provide long‑term stability lead to increased risk‑taking and exploration among scientists working in academic research settings.

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Background

The paper discusses theoretical and empirical work suggesting that incentive schemes which tolerate failure and provide stability can encourage innovators and scientists to take more risks and explore novel ideas. However, the authors explicitly note uncertainty about how broadly and under what specific circumstances this insight applies within scientific research contexts.

Clarifying the boundary conditions—such as field differences, career stage, funding mechanism design, and institutional environments—would inform the design of grant policies that aim to promote exploration without unintended consequences.

References

A combination of theoretical and empirical work in the economics of innovation suggests that failure-tolerant incentive schemes which provide long-term stability can induce more risk-taking and exploration among innovators and scientists. Although the extent to and conditions under which this applies in science remains unclear.

Scientific Talent Leaks Out of Funding Gaps (2402.07235 - Tham et al., 11 Feb 2024) in Introduction, footnote following the sentence citing Manso (2011), Ederer and Manso (2013), Azoulay et al. (2011), and Myers and Tham (2023)