Frank Knight, uncertainty and knowledge spillover entrepreneurship

Abstract In his seminal 1921 book, Risk, Uncertainty, and Profit , Frank Knight distinguished uncertainty risk. This paper applies Knight's concept of to knowledge generated in incumbent organizations explain the inherent difficulty assessing potential innovations along with key role played by spillover entrepreneurship as a conduit for transforming new created an organization but ultimately commercialized through creation firm innovation. Knowledge is inherently uncertain constitutes what characterized filter impeding innovative activity context firms organizations. The organizational institutional market can either facilitate or impede from where it was entrepreneurial startup transformed into empirical evidence based on large, unbalanced panel 9,126 UK constructed six consecutive waves community innovation survey annual business registry during 2002–2014. Implications managers, scholars, policymakers are provided.