Political partisanship influences firm executives’ beliefs about the future economy. We find that firms with partisan aligned managers with the U.S. president have more patents, more patent citations, and higher patent value. We establish causality using a difference-in-differences approach...

The most important motivating factor for enhancing innovation activity is lending as a stimulus for the development of a modern enterprise. The motivation of the Ukrainian enterprise, based on the need for innovative activity lending in ensuring the efficiency of its economic activity, was...

This paper documents that firms increasingly finance innovation with their stock of innovation, measured as patents. We refer to this behavior as financing innovation with innovation. Drawing on patent collateral data from the US and China, we first show that (1) in both countries the number and...

We find that network centrality is associated with a higher number and better quality of innovation. Network centrality also positively relates to a number of breakthrough innovations, and firms that exert greater influence in the innovative network have higher profitability. Moreover, network...

By discriminating between a lazy manager and a career concerns hypothesis, Aghion et al. (The American Economic Review 2013, 103(1), 277-304) try to disentangle the link between innovation and institutional ownership. Citation-weighted patent counts are used as a proxy for innovation, which...

We find that institutional ownership in publicly traded companies is associated with more innovation (measured by cite-weighted patents). To explore the mechanism through which this link arises, we build a model that nests the lazy-manager hypothesis with career-concerns, where institutional...

Familienunternehmen gelten in der öffentlichen Wahrnehmung als besonders innovativ und als "Hidden Champions" der deutschen Wirtschaft. In jüngster Zeit widmen sich Forscher vermehrt der Überprüfung dieser These und kommen zu diametral unterschiedlichen Ergebnissen. Einerseits wird...

This paper shows that the presence of conditional staging in R&D (Research & Development) has a critical impact on portfolio risk, and changes diversification arguments when a portfolio is constructed. When R&D projects exhibit option-like characteristics, correlation between projects plays a...

Using the 2007 Mannheim innovation survey, we investigate whether family firms are more financially constrained than other firms and how this affects both innovation input as well as innovation outcomes such as market and firm novelties or process innovations. Based on the CDM framework,...

Among contemporary economists, Mariana Mazzucato stands out for her emphasis on the importance of innovation to solve pressing challenges and achieve a greater quality of life. However, the type of mission-oriented innovation policies she promotes usually rely on an overly mechanical view of...