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including the profitability of the invention. Business R&D is risky for at least two reasons. The first source of risks comes from R&D nature, where an R&D project could fail without residual values. The second source of risks comes from takeover risks, which means R&D is appealing to bidders because they could gain technologies from acquisition targets. Therefore, firms may gain R&D profit that co-moves with takeover waves, causing risks to the company which engages in R&D activity. One way entrepreneurs can reduce these uncertainties or risks

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