Firm Survival as a Function of Individual and Local Uncertainties: An Application of Shackle's Potential Surprise Function

:The link between the management of uncertainty and knowledge creation is core element behind firm survival, as these two factors are critical for true innovation. This article links survival highly innovative firms to their application in context types management: (i) individual firm's ability handle uncertainty; (ii) aggregate local “neuroticism” facing that characterizes geographic location where operates. The study inspired by Audretsch Dohse's model growth location. We augment this with George Shackle's potential surprise function handling uncertainty. Additionally, we extend also considering psychological profile localities, particular level neuroticism according so-called Big Five taxonomy. Using data Cambridge Region (UK) period 2010–2014, find that, on level, daring companies survive less frequently, but appear live longer if they manage survive. Survival appears be influenced locational characteristics related neuroticism. In particular, being located a place higher associated lower rates.