In this paper, I examine the effects of China's civil examination system (keju) on modern-day innovation and firm … ingredients (pine and bamboo) as the instrumental variable, I find that keju significantly facilitates innovation and firm entry … important factor for innovation and firms' success. Moreover, suggestive evidence supports that keju does not reduce people …

Innovation is key to technology adoption and creation, and to explaining the vast differences in productivity across … and within countries. Despite the central role of the entrepreneur in the innovation process, data limitations have … restricted standard analysis of the determinants of innovation to consideration of the role of firm characteristics. We develop a …