The effective corporate governance of innovating firms calls for a capacity to deal with novelty, visibility and appropriability. Such capacities are found to vary among sectors, in terms of industry-specific expertise, firm-specific perceptiveness, and (sometimes) stakeholder enfranchisement....

This paper examines how firms' technological capability development is affected by corporate governance, broadly understood: “how and by whom the firm is directed and controlled”. Three state-owned companies are studied. Shanghai Auto Industry Corporation (SAIC) is a long-established...