Risk taking behavior: Another look at the Ethiopian economy �

Tigabu Molla Meresa† Mollameressa2005@yahoo.com

Economic analyses of growth have bewared that sustainable economic growth has been incumbent upon the level of technological development; which has also been the source of divergence in economic strengths and growth rates between countries across the world. The technological breakthrough that steered Industrial Revolution and its lasting effect on the global economy is one such triumphs of technology. For it is the main source of productivity increase, a failure to maintain a continuous technological progress would precipitate long-run growth to grind to a halt. So how to drive and sustain technological progress has been the nub of questions around economic growth. The steering wheel of this engine of growth is primarily Research and development (R&D) effort. Yet R&D is a risky activity, involving not only how much to invest but also how to invest. The amount of resources it requires and the uncertainty of its pay-offs makes it a risky strategy. Firms and other agents like governments that have, whatever happens, continually committed unflagging endeavor to R&D have been marks of economic success. In other words, risk-taking behavior has been the thrust of...More story