Abstract
Turning an idea into a working technology is one step to commercialization. Behind every successful technology is successful funding to develop and produce it. If finding funding challenges inventors, investors have the challenge of determining where, how, and with whom to invest. Just because an emerging technology profits some that does not mean that any investor will profit. Standing between entrepreneurs and investors are fraudulent and frothy—speculative, likely-to-fail—firms, a sign of a growing market, reflecting the enthusiasm of promoters and the reality of technological and market uncertainty. Such firms can harm an entire industry by creating distrust and doubt, discouraging investment, and forcing legitimate firms to expand more resources to secure funding. Will fraud and froth adversely affect 3D printing? This chapter offers a historical perspective on people eager to invest in the emerging technologies of independent telephony in the 1890s–1910s, radio in the 1900s, oil in the 1910s–20s, and penny stocks. Although fraud and froth were rife in relation to all these technologies, demand proved so great that the losses comprised only a small part of the market. Similarly, 3D printing will suffer from fraud and froth, but the overall harm should be minimal.
The author wishes to thank Richard John, Peter Meyer, and Peter Weiss for their comments.
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Notes
- 1.
Emerging Technologies Conference 2013.
- 2.
Tushman and Anderson 1986.
- 3.
Standage 1998, p. 18.
- 4.
Baum et al. 1997, p. 112.
- 5.
Kemper 2003.
- 6.
- 7.
Macey and Miller 1991, p. 353.
- 8.
Ibid., p 363.
- 9.
Aitken 1985, p. 180.
- 10.
Ibid., p. 185.
- 11.
Ibid., p. 185.
- 12.
Ibid., p. 185.
- 13.
Ibid., p. 186.
- 14.
Ibid., pp. 185–187.
- 15.
Adams 2013, p. 12.
- 16.
Adams 2013, pp. 12–13.
- 17.
Miles 1996.
- 18.
Olien and Olien 1990.
- 19.
Tracy 2007.
- 20.
NASAA 1989.
- 21.
Goldstein 1992, p. 780.
- 22.
- 23.
Wohlers 2013.
- 24.
Gartner Group 2012.
- 25.
Grimm 2012.
- 26.
Mollick 2013.
- 27.
NASAA 2012.
- 28.
- 29.
Colby 2013.
- 30.
Internet Fraud 2013.
- 31.
Morgan 2013.
- 32.
- 33.
Mollick 2013.
- 34.
Ibid.
- 35.
Pepitone 2012.
- 36.
Mollick 2013, pp. 20–21.
- 37.
- 38.
Still Not Working 2013.
- 39.
- 40.
Childs 1991, p. 197.
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Coopersmith, J. (2016). Fraud and Froth: Free-Riding the 3D Printing Wave. In: van den Berg, B., van der Hof, S., Kosta, E. (eds) 3D Printing. Information Technology and Law Series, vol 26. T.M.C. Asser Press, The Hague. https://doi.org/10.1007/978-94-6265-096-1_8
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