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Innovation projects are prone to “escalation of commitment” (the tendency to continue projects even if it is clear that they will be unsuccessful). In this study, we introduce a construct measuring the escalation prevention potential (EPP) of innovation projects as perceived by individuals in the organization. EPP consists of three components: (i) goals, (ii) process, and (iii) ability, to shield projects from escalation to commitment. A survey was conducted among 1062 clinicians working in hospitals implementing Electronic Medical Records. The empirical results show that the three theoretical components of EPP sum up to a single measure. Four organizational characteristics of organizations (organizational routines, authentic leadership, employee involvement and support staff quality) explain a large share of the variation in EPP.

There are conflicting opinions on whether the existing US legal and economic environment for pharmaceutical research is conducive for the repurposing of patent-protected drugs. This article therefore addresses the following innovation policy questions: Does US patent law and regulatory policy assign sufficient value to new use patents in the pharmaceutical industry? If present law and regulatory policy does assign sufficient value, what evidence is there that the pharmaceutical industry is actively involved in technology strategies to repurpose existing pharmaceuticals? Based on an evaluation of the extant legal literature, US pharmaceutical firms are generally successful at legally enforcing their new use patents against infringement. Furthermore, the truncating of the time and resources dedicated to the drug discovery, development, and regulatory review process provide sufficient economic "value" on both the front end of the pharmaceutical regulatory approval process, and the back end of the drug patent term for encouraging pharmaceutical industry repurposing.

This paper investigates the relationship between deposition effect and escalation of commitment and herding behavior. First, this paper ranks the mutual fund into five groups by herding style, and we examine deposition spread (DISP) and escalation of commitment dispread (ESCA) zero investment portfolios in each herding style portfolio. Then, we investigate whether the paper gain ratio or paper loss ratio impacts on herding behavior after controlling other characteristics. Our results can be summarized as follow: First, deposition effect and escalation of commitment has negative impact on mutual fund performance. Second, in buy herding style fund, the deposition effect and escalation of commitment has the most negative impact on performance, however, in sell herding style fund, the negative effect disappears. Finally, we find the deposition effect indeed impacts the herding behavior.

Innovation projects are prone to “escalation of commitment” (the tendency to continue projects even if it is clear that they will be unsuccessful). In this study, we introduce a construct measuring the escalation prevention potential (EPP) of innovation projects as perceived by individuals in the organization. EPP consists of three components: (1) goals, (2) process, and (3) ability, to shield projects from escalation to commitment. A survey was conducted among 1,062 clinicians working in hospitals implementing electronic medical records (EMRs). The empirical results show that the three theoretical components of EPP sum up to a single measure. Four organizational characteristics of organizations (organizational routines, leadership reflexivity, employee involvement, and support staff quality) explain a large share of the variation in EPP.