We investigate whether the equity-linked components of top executive pay have an effect on patenting activity within a firm. We find a positive relationship between firm patenting activity and managerial alignment incentives created by stock and stock option grants. Prior work has shown that the...

This paper investigates whether aligning manager and owner incentives can improve the innovation performance of firms. We find that pay-sensitivity works to align managerial actions to shareholder interests. As managerial wealth becomes more sensitive to the firm's stock price the innovation...

This paper studies the innovation response of upstream technology suppliers when their downstream technology buyers transition from regulation to product market competition. First, we develop a theoretical framework that models this particular organizational structure. Second, we use the US...

This paper develops a sequential application-grant framework to analyze competing explanations for the two U.S. patent surges during the mid-eighties and early nineties: (a) the ¿friendly court¿ hypothesis argues that legislative changes in the 1980s lowered the cost of patenting and led to...

The rate of patenting in the U.S. has exploded in the last half of the 1990s. It is widely believed that the increase in patent grants is at least partly a result of the apparent decline in examination standards. There has been little exploration, however, of the theoretical prediction that a...

This paper analyzes the effects of different sources of R&D funding and patent office attributes on the patenting process. Another important contribution is modeling the effect of a random delay in the 'pendency' time as a stochastic process and quantifying its effect on patenting. The empirical...