What is it that makes a successful sovereign wealth fund? I outline three primary factors. First, a sovereign wealth fund needs a predictable and dedicated capital source. Second, few sovereign wealth funds have laid out clear and defined rules for withdrawal of fund capital. Third, a sovereign...

We examine the effect of foreign institutional investors on firm innovation. Using firm-level data across 26 non-U.S. economies between 2000 and 2010, we show that foreign institutional ownership has a positive, causal effect on firm innovation. We further explore three possible underlying...