Innovation activities create substantial firm value, but they are difficult to manage owing to agency risk which is … commonly thought to result in shirking, hence underinvestment in innovation. However, agency risk can also create inefficient … allocation of resources among innovation activities, on which the literature provided limited understanding. We examine an …

This paper examines two related research questions: (1) Does a firm's innovation strategy affect its going public (vs …'s subsequent innovation strategy? Using a dataset consisting of both private and newly public U.S. firms' patent and financial data … over the period 1997-2008, we find that private firms doing exploitative innovation are more likely to go public, and that …