Jethmalani, Ram, Jackson, Thomas Penfield, Lee, John D., Tyra, Raymond E., Bailey, Mead, Jacover, Jerold A., Nash, Ernest, Ely, Robert B., Paper, Lewis J., Bloom, Murray Teigh, Hereth, Lee J., O'Donnell, Martin J., Booth, Wayne C., and Kinzer, James R.
Denisa Mindruta, Joao Albino Pimentel, Glenn Hoetker, Haldemann, Antoine, Groupement de Recherche et d'Etudes en Gestion à HEC (GREGH), Ecole des Hautes Etudes Commerciales (HEC Paris)-Centre National de la Recherche Scientifique (CNRS), and HEC Research Paper Series
Subjects
Economic growth, Innovation and R&D, Exploit, Public economics, business.industry, Ecology (disciplines), Institutional economics, Test (assessment), Competition (economics), Incentive, Organizational learning, Exploration versus exploitation, Economics, [SHS.GESTION]Humanities and Social Sciences/Business administration, Institutional environment, [SHS.GESTION] Humanities and Social Sciences/Business administration, business, Patents, Panel data
Abstract
This paper examines the impact of the macro-institutional environment on exploitative-explorative innovation. Building on organizational learning, institutional economics, and innovation studies, we identify country-level institutions that might foster or hinder firms’ incentives and ability to explore or exploit. We test our conjectures by analyzing all patented firm innovations in 22 countries over the 1985-2008 timeframe. Empirical tests demonstrate the role of national institutions in explaining cross-country differences in the level of exploitative and exploratory innovation. The results also suggest that firms’ incentives to explore are influenced by changes in the institutions that regulate the ecology of competition in an economy.
Published
2015
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