Akcigit, Ufuk; Baslandze, Salomé; Lotti, Francesca - 2020
How do political connections affect firm dynamics, innovation, and creative destruction? To answer this question, we … build a firm dynamics model, where we allow firms to invest in innovation and/or political connection to advance their … industries with a larger share of politically connected firms feature worse firm dynamics. We identify a leadership paradox: when …