technology and sales as mediated by innovation activities. However, the index is insignificant for the second mediator, export … longevity. However, in the final model, both the level of innovation and export longevity positively and substantially affect …

Using novel data on European firms, this paper examines the effect of business group affiliation on innovation. We find … that business groups foster the scale and novelty of corporate innovation. Group affiliation is particularly important in … industries that rely more on external finance and have a higher degree of information asymmetry. We also find that the innovation …