icsb 2010 neuroentrepreneurship
TRANSCRIPT
Presented at ICSB 2010, Cincinnati OHbyNorris Krueger, Max Planck Institute & Entrepreneurship Northwest
(thanks to great colleagues, Mellani Day, Angela Stanton, Isabell Welpe and more)
Neuroentrepreneurship: What Can Entrepreneurship Scholars & Educators (& Practitioners) Learn from Neuroscience?
Why Neuro-entrepreneurship?
Behavior starts at the “neuro” level Current methods don’t reach this deep Opportunity to ask questions:
That we could not answer before That we couldn’t think to ask before In a better way To get better answers then ever before
Latest Work such as...
Entrepreneurship becoming focus? Sahakian team – 'hot' cognitions Wald team - dopamine
Nemmers Prize talk May 7, 2005
Activation in cingulate cortex & spindle cell densityActivation in cingulate cortex & spindle cell density
Ultimatum games: This is your brain on unfairnessUltimatum games: This is your brain on unfairness
Herb Simon’s (1963) Levels
Example: Libet, et.al. (1983):
Experimenter can detect intent almost 500 milliseconds before subject perceives it
Suggests neurological antecedents to: Intentions Behavior
What does this mean with regards to antecedents of entrepreneurial intent?
Economically-important regions of the human brainEconomically-important regions of the human brain
Cingulate (yellow), orbitofrontal (pink), Cingulate (yellow), orbitofrontal (pink), amygdala (orange), amygdala (orange), somatosensory (green),somatosensory (green),
insula (purple)insula (purple)
Neuroeconomics has shown us that Experimental Methods Can:
Reveal gaps in current theory Lead to better specified hypotheses and
propositions (Dolan 2008). Identify and analyze antecedent states and
their effects upon decision-making Identify reflexive versus reflective behaviors
and effects
What can neuroscience offer? Look into the “ultimate black box” Rigorous experimental methodologies Can allow us to:
Understand deeper structures of entrepreneurial cognition
Map pre-decisional dynamics Conceptualize and measure entrepreneurial
decision-making Overcome “retrospective bias” and the
interactions among independent variables
Domains of neuroentrepreneurship and experimental entrepreneurship
Domain of Experimental Entrepreneurship
Neuroentrepreneurship
Limitations of Neuroscience
What about group behaviors of entrepreneurs as versus the individual?
Complex behaviors and systems of the brain – what are we seeing/measuring… really?
How to control for the influence of external or extraneous stimuli – are we measuring what we think we are measuring?
Learning to use the tools, methods and procedures – a new way of thinking about the issues (steep learning curve... turf?)
Interesting and relevant discoveries thus far…
Pre-entrepreneurial processes: affective & cognitive reasoning
Automatic versus Intentional Processing (reflexive versus reflective)
Mental prototypes – deeply held assumptions for the good or for the bad
Fluid intelligence – ability to solve new problems Change blindness – focus on the little ball…
Relevant issues in current entrepreneurship research?
Common variance bias – attributes of entrepreneurs may indeed be correlated with attributes of the perceived opportunities
Dynamism of entrepreneurial processes Conflicting effects of independent variables Perceived value of opportunities
Neuroscience Designs as Solutions? Design not just methodology proposed
Allows for current analysis of entrepreneurial decision process, but also…
…controls for situational specifics of entrepreneurial opportunities
Researchers must develop hypotheses and test explanations before the fact
Modeling dynamics and causes can reveal gaps in current theory; map dynamics of pre-entrepreneurial decision processes
Where to begin? What questions might we start with?
Deeper cognitive structures (Mitchell, 2000) E.g. Detect entrepreneurial scripts and switches
(on/off)? When does the idea become an opportunity? When is that opportunity triggered as something to
act upon?
Detecting discontinuous changes – “Aha!”
Potential topics for research?
Behavioral Decision Theory: Framing Effects and Paradoxes Preferences Utilities
Game Theory Perceptions Emotions & Affect
Affect Passion & Fear Trust
Much, much more – applications in your area of research
Conclusion
Neuroscience methodologies and designs have much to offer
Could substantially advance the field of entrepreneurship
Exciting new world to explore and apply We will undoubtedly be surprised and may
very well have to change some current beliefs and assumptions
Insula and Insula and lowlow strategic IQ strategic IQ
Strategic IQ (x-axis): Strategic IQ (x-axis): How much you earn How much you earn from choices & from choices & beliefsbeliefs
Correlated (-) with Correlated (-) with activity in L insula in activity in L insula in choice task choice task
Are overly self-Are overly self-focussed people poor focussed people poor strategic thinkers? strategic thinkers?
Overview of fMRIOverview of fMRI
Example: Entrepreneurial Opportunity
Various issues in current research: Dependent and independent variables not
specified or confounding variables not recognized or controlled for (Shane, 2000, 2004; Venkataraman, 1997)
Static versus dynamic perspective Opportunity characteristics not recognized or
matched with entrepreneur Absence of experimental approaches