, and reallocation of capital. This finding applies mainly for obsolescence of core innovation and embodied innovation, and … profits of obsolescent firms. The measure contains incremental information about firm innovation relative to measures focusing … on new innovation …

This paper studies how hedge fund activism reshapes corporate innovation. Firms targeted by hedge fund activists … experience an improvement in innovation efficiency during the five-year period following the intervention. Despite a tightening … in R&D expenditures, target firms experience increases in innovation output, measured by both patent counts and citations …