Publication Type
Working Paper
Version
publishedVersion
Publication Date
7-2017
Abstract
Online crowdfunding is a popular new tool for raising capital to commercialize product innovation. Product innovation must be both novel and useful (1-4). Therefore, we study the role of novelty and usefulness claims on Kickstarter. Startlingly, we find that a single claim of novelty increases project funding by about 200%, a single claim of usefulness increases project funding by about 1200%, and the co-occurrence of novelty andusefulness claims lowers funding by about 26%. Our findings are encouraging because they suggest the crowd strongly supports novelty and usefulness. However, our findings are disappointing because the premise of crowdfunding is to support projects that are innovative, i.e. that are both novel and useful, rather than projects that are only novel or only useful.
Keywords
Crowdfunding, Entrepreneurship, Innovation
Discipline
Entrepreneurial and Small Business Operations | Technology and Innovation
First Page
1
Last Page
42
Identifier
10.2139/ssrn.3003283
Citation
MUKHERJEE, Anirban; YANG, Cathy L.; XIAO, Ping; and CHATTOPADHYAY, Amitava.
Does the crowd support innovation? Innovation claims and success on kickstarter. (2017). 1-42.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/5928
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.2139/ssrn.3003283
Included in
Entrepreneurial and Small Business Operations Commons, Technology and Innovation Commons