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Quote by Kenneth Arrow

“The trouble is that the risks that are being hedged very well by new financial securities are financial risks. And it appears to me that the real things you want to hedge are real risks, for example, risks in innovation. The fact is that you'd like companies to be able to take bigger chances. Presumably one obstacle to successful R&D, particularly when the costs are large, are the risks involved.”

Author

Kenneth Arrow

Kenneth Arrow, born on August 23, 1921 in New York, USA, was a distinguished economist. He made significant contributions to the field of economics, particularly in general equilibrium theory and welfare economics. Arrow was awarded the Nobel Prize in Economic Sciences in 1972 for his pioneering contributions to the economic sciences. more

“I think the development of the venture capital system has been an example of something which is a successful improvement in risk-bearing. It doesn't exactly remove the risks at the beginning, but at least creates greater rewards at a slightly later stage and therefore encourages, say, small companies to engage in technologically risky enterprises.”

Thinking Has Beens Company Successful Greater Risk Stage Example Development Rewards Improvement Enterprise Remove Venture Venture Capital

Author:Kenneth Arrow

“All of us might wish at times that we lived in a more tranquil world, but we don't. And if our times are difficult and perplexing, so are they challenging and filled with opportunity.”

Ifs World Might Political Opportunity Politics Wish Difficult Challenges Filled Our Time 4th Of July Tranquil

Book:The Quotable Robert F. Kennedy

Source: The Quotable Robert F. Kennedy

“Venture capital has done much more, I think, to improve efficiency than anything.”

Thinking Done Efficiency Venture Venture Capital

Author:Kenneth Arrow

“I'm struck by the fact that by and large equity capital doesn't play a big role in new financing; it's either bonds or internal financing but not really equity. And therefore, it's not clear that anything which improves the equity markets has really much to do with the productivity of the economy as a whole.”

Play Whole Facts Bigs Roles Economy Clear Productivity Internals Equity Financing