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When a firm collaborates with its suppliers, it expands its access to external know-how and thus can enhance its innovation performance. Such collaborations are common and argued to have significant impact on the firm's market outcomes. However, such collaborations also expose the firm to various transactional hazards, including knowledge spillovers and opportunism. This trade-off looms over the firm's commitment to a market positioning strategy and the functional capabilities it draws on to generate its strategy dividend. Recent accounts suggest that the verdict on supplier collaborations is noisy and that partner perceptions of these collaborations do not align on key issues of governance, strategy, and value generation. To investigate this, the authors study 202 formal codevelopment contracts of high-tech original equipment manufacturers that collaborated with suppliers from 1985 to 2016. Drawing on the governance value analysis framework, the authors show how misalignment between the firm's codevelopment contracts, capabilities, and market positioning strategy significantly erodes its innovation performance. Thus, blanket prescriptions for one type of contract or the other are misdirected, their effectiveness being a contingent outcome dependent on the firm's market positioning strategy and functional capabilities. This research presents one of the most complete tests of the governance value analysis framework to date. [ABSTRACT FROM AUTHOR]

Innovation in the mining sector is crucial for industrial, economic, and sustainable development, particularly for developing economies. It is important to understand the factors that stimulate innovation in this sector to upgrade productivity and growth. In the mining sector, innovation is driven by profit structure, which in turn depends strongly on commodity prices. We hypothesize two innovation responses to prices, which we test against existing evidence found in recent literature and available industry data. We find two different innovation responses to prices: exploration and in-house research and development (R&D) investments by mining companies increase as commodity prices rise, while the use of suppliers' innovation intensifies when prices decrease. Policies to strengthen the sector should provide long-term support for the Mining Equipment, Technology and Services (METS) sector so that they can continuously invest in R&D to provide innovative solutions for mining firms, possibly extending to lateral linkages, applying digital and low-carbon solutions developed for the mining sector and beyond. [ABSTRACT FROM AUTHOR]

Several firms worldwide that attempted to penetrate the bottom of the pyramid (BOP) with digital service innovations have encountered disappointing returns. This article explores what capabilities firms should develop and how they should nourish them for value creation at the BOP. Using the multiple-case method, this study inductively derives persuasion, co-creation, adaptation, and self-sustainability as essential capabilities. Cumulative maneuvering of these capabilities resulted in a sand cone model. Both established incumbents and digital natives benefit from this model, which enables them to safeguard their digital offerings while penetrating or expanding within BOP markets. [ABSTRACT FROM AUTHOR]

This article explores the effects of open innovation on innovation performance in military bureaucracies. While the understanding of how bureaucratic organizations can benefit from open innovation is still limited, this study discovered that open innovation can have a negative effect on innovation performance. However, leveraging an innovative culture can lead to improved innovation performance in organizations characterized by high levels of structure and hierarchy, especially those where secrecy and security are of vital importance. [ABSTRACT FROM AUTHOR]

In this article, we show that firms can become conservative in innovation when their directors face job insecurity. We find that after the staggered enactment of majority voting legislation that strengthens shareholders' power in director elections, firms produce fewer patents, particularly exploratory patents, and fewer forward citations. This effect is stronger for directors facing higher dismissal costs or threats and for firms with greater needs for board expertise and is mitigated by institutional investors' expertise in innovation. Overall, our results suggest that heightened job insecurity induces director myopia, which leads to a reduction in investment in risky, long-term innovation projects. [ABSTRACT FROM AUTHOR]

We build a novel comprehensive data set of new product trademarks as an output measure of product development innovation. We show that risk-taking incentives in CEO compensation motivate this type of innovation and that this innovation improves firm performance. Using an exogenous shock to executive compensation, we find that reductions in stock option compensation cause reductions in new product development. We also find that firms undertaking new product development experience increases in future cash flow from operations and return on assets. These findings suggest the importance of product development innovation to firms and new trademarks as a novel innovation measure. [ABSTRACT FROM AUTHOR]

While external search allows organizations to source diverse ideas from people outside the organization, it often generates a narrow set of nondiverse ideas. We theorize that this stems from an interplay between organizations' idea selection and the external generation of ideas: an organization selects ideas shared by external contributors, and the external contributors, who strive to see their ideas selected, use the prior selection to infer what kind of ideas the organization is looking for, and to respond. Contributors whose ideas are misaligned with the organization's selection tend to stop submitting ideas (i.e., self-selection) or adjust the ideas they submit so that they correspond (i.e., self-adjustment), resulting in a less diverse pool of ideas. Our central hypothesis is that the more consistent organizations are in their selection, the stronger the coevolutionary lock-in: organizations with greater selection consistency receive future ideas with lower content variety. We find support for these predictions by combining large-scale network analysis and natural language processing across a large number of organizations that use crowdsourcing. Our findings suggest a reconceptualization of external search as a two-way street: organizations are not simply passive receivers of ideas but send signals that shape the pool of ideas that externals share. [ABSTRACT FROM AUTHOR]

This study investigates whether capital account liberalization, a leading characteristic of globalization, is associated with firms' future innovation output. Employing a novel firm-level panel data set covering 41 countries over two decades, we show that capital account liberalization is significantly associated with higher corporate patenting activities, particularly for firms from innovation-intensive industries. Further analyses show that the effect is stronger among firms from economies in a better legal environment, signifying the important role of good institutional quality in facilitating the positive impact of liberalization. The effect is also stronger among firms with higher initial productivity, consistent with the "productivity" hypothesis, according to which bigger and more productive firms generate more innovation after liberalization. Our findings are robust to the use of various measurements, subsamples, and estimation models. This study provides global firm-level evidence of the real economic impact of financial globalization. [ABSTRACT FROM AUTHOR]

This article studies how changes in investor protection regulations affect local entrepreneurial activity, relying on the heterogeneous impact of a 2011 SEC regulation change on the definition of accredited investors across U.S. cities. Using a difference-in-differences approach, I show that cities more affected by the regulation change experienced a significantly larger decrease in local angel financing, entrepreneurial activity, innovation output, employment, and sales. I find that small business loans and second-lien mortgages became entrepreneurs' partial substitutes for angel investment. My cost-benefit analysis suggests that the costs of protecting angel investors through the 2011 regulation change outweigh its benefits. [ABSTRACT FROM AUTHOR]

Initially making its name as the backbone technology of Bitcoin, blockchain has been referred to as a distributed ledger, public database, Internet of value, digital infrastructure, network, and platform. Compared with fluctuating cryptocurrency and non-fungible token (NFT) markets, applications of blockchain technology in more diverse business scenarios have received less attention. By analyzing 16 international business use cases under eight categories of blockchain-based solutions, this article offers a contextualized understanding of the potential for blockchain to become a general-purpose technology (GPT). It discusses how the extensiveness, evolvability, and enabling (3Es) aspects of blockchain influence the value, vision, and viability (3Vs) required for successful real-world applications. The article discusses how firms can draw on lessons from failed cases and good practices of existing cases to enhance the 3Vs for blockchain adoption. [ABSTRACT FROM AUTHOR]

A perennial challenge for executives in established firms is deciding how and when to respond to emerging technologies. This article demonstrates that the way emerging technologies play out in established industries differs according to how the business system is affected. Some have primarily a supply-side effect (on how a firm in the industry creates its product), while others have a primarily demand-side effect (on how users consume the product). Supply-side effects play out over relatively long periods of time in a predictable way, with incumbent firms executing similar strategies though at different speeds. Demand-side effects are faster-acting and more volatile, with incumbents often experimenting with a range of different business models as they seek a viable way forward in a changing market. By understanding these important differences between supply-side and demand-side effects and being able to anticipate the typical patterns of responses from incumbents, executives can make better choices in how and when to invest in emerging technologies. [ABSTRACT FROM AUTHOR]

We examine innovation following the Great Depression using data on a century's worth of U.S. patents and a difference-in-differences design that exploits regional variation in the crisis severity. Harder-hit areas experienced large and persistent declines in independent patenting, mostly reflecting the disruption in access to finance during the crisis. This decline was larger for young and inexperienced inventors and lower-quality patents. In contrast, innovation by large firms increased, especially among young and inexperienced inventors. Overall, the Great Depression contributed to the decline in technological entrepreneurship and accelerated the shift of innovation into larger firms. [ABSTRACT FROM AUTHOR]

Using novel shadow bank funding data, I find that shadow banks are funded by the very banks they compete with when originating mortgages. Evidence suggests that banks have market power in the upstream market for shadow banks' funding, which in turn softens mortgage market competition through their strategic behaviors in both markets. I build and calibrate a quantitative model of vertical integration and competition to show that those consumers who would most benefit from shadow bank services are the ones to bear the costs. Secondary market innovation could increase downstream competition by reducing shadow banks' reliance on their competitors. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

We find that organization capital is negatively related to the cost of bank loans. This finding is robust to additional analyses including those that address omitted variable bias and reverse causality. In addition, we find that organization capital reduces all-in-spread-undrawn. When we decompose the bank loan cost, we find that organization capital increases facility fees due to its risk-engendering characteristics. Finally, we find that organization capital is positively associated with a high likelihood of the presence of inventors and innovation output, consistent with the argument that organization capital is embedded in the key talent within a firm. [ABSTRACT FROM AUTHOR]

In theory, financial markets promote innovation by selectively allocating capital to high-quality projects. In this article, I show that equity markets can also inhibit innovation. In public firms, I find that short-term equity market declines cause pharmaceutical companies to abandon early-stage drug developments, irrespective of drug quality or changes in a firm's stock price. I show that financing constraints drive this behavior, highlighting that even short-term market fluctuations can have long-term effects on pharmaceutical innovation and prevent potentially life-saving drugs from progressing to the market. [ABSTRACT FROM AUTHOR]

It is well established in the literature that a firm's innovation can promote its exports through demand-pull and/or regulatory channels. However, there is a lack of knowledge on whether green innovation strategies affect a firm's international expansion. In this study, we depart from the existing literature by considering the introduction of environmental innovation as an antecedent factor that creates incentives for a firm to enter new markets and to be persistent in export activities. In particular, we investigate whether strategies aimed at reducing energy or water consumption and taking care of the environment have an impact on the probability of being an exporter and on the probability of continuing to export. The results, for a panel data of Spanish firms, confirm the existence of a premium on the probability of entering and remaining in international markets. Commitment to green innovation strategies, such as reductions in energy and water consumption or the minimization of environmental impact, generates a premium for companies that internalize their activities. [ABSTRACT FROM AUTHOR]

Firms in younger labor markets produce more innovation. We establish this by instrumenting the current labor force with historical births in each local labor market in the United States. Analyses of firms and inventors allow us to rule out unobservable heterogeneity across local labor markets and firms, life cycles, and other effects. Corporate innovation in younger labor markets reflects the innovative characteristics of younger labor forces, and its market value is higher. Younger workers as a group, not merely inventors by themselves, produce more innovation for firms through the labor force channel rather than through a financing or consumption channel. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

At the time of an initial public offering (IPO), firms seek to maximize their stock market value. The authors theorize and show that a firm's innovation potential—firm outputs and activities that contribute to the development of future new products—can be used by the managers of IPO firms as a credible signal of the quality of the firm. Using a sample of 370 IPO firms from the consumer-packaged goods and pharmaceutical industries, and three metrics of innovation potential, the authors show that firms' innovation potential is (1) positively associated with the initial value of the IPO and with the first-day IPO returns and (2) negatively associated with the extent to which insiders sell their shares at the time of the IPO. The effectiveness of the three metrics of innovation potential as a signal of firm quality varies: patents have a stronger impact on insider sales than preannouncements and generic references to future innovation, while preannouncements have the strongest impact on first-day IPO returns. The article presents a nuanced view of the extent to which various firm stakeholders consider information about firms' innovation potential to be a credible signal that reduces the adverse selection present in IPO deals with insider sales. [ABSTRACT FROM AUTHOR]

• It tests the impact of environmental investment on the productivity of listed firms. • Environmental investment has significant negative impact on the productivity. • The negative impact on the listed firms with high productivity is relatively large. • The nature of state-owned firms hinders the improvement of firm productivity. • Environmental investment affects the productivity of heavily-polluting firms. This paper analyses the impact mechanisms of environmental investment on the productivity of listed firms in China. The empirical results show that, first of all, environmental investment has a significant negative impact on the productivity of listed firms, which confirms that listed firms have a typical compliance cost effect. Moreover, listed enterprises with low productivity and high productivity are less negatively affected by environmental investment than are listed enterprises with moderate productivity. Secondly, the first-order lag term of environmental investment has a significant inhibitory effect on the productivity of listed companies in the eastern region, but has no significant impact on the productivity of listed companies in the central and western regions. Finally, the increase in environmental investment has a great influence on the productivity of listed firms in heavily polluting industries, but it has no obvious influence on non-heavily polluting industries. [ABSTRACT FROM AUTHOR]

• A failed innovation may signal that line of research must be abandoned. • But on the other hand this line of research could be fruitful if further pursued. • In this case a failure is not a reliable signal that this line should be abandoned. • We show that the latter case is especially relevant in complex technologies. This paper explores whether failures in innovation projects at the firm level contribute to strengthening firms' innovative activities and the odds of future innovation. Building on the literature on NK fitness landscapes, our paper focuses on technological complexity as a key factor that influences the response to innovation failures, guiding whether to discontinue the current path or, alternatively, to leverage the failure as a foundation for future innovation success. We then test the hypothesis derived from our model using a panel data set constituted by ten waves of the Community Innovation Survey held in the Netherlands from 1996 to 2014. Our findings show the fundamental relevance of the different forms of learning that are available to the firm. In particular, we highlight the positive role of learning after a previous innovation project has been abandoned. Previous failure in innovating produces some forms of learning inside the firms, and this learning positively contributes to subsequent successful innovation. Moreover, by differentiating between radical and incremental innovation, and between complex and less-complex innovation landscapes, we highlight the role of incremental innovation over the whole spectrum of landscape complexity, while the role of radical innovation appears to be more limited to less turbulent technological landscapes. [ABSTRACT FROM AUTHOR]

• The relationship of Firms' GVC positioning and CEP is investigated for the first time. • We find a right-side smile curve between firms' GVC positioning and CEP. • The improvement of CEP could be driven by firms' downstream climbing in GVC. • The demand diversity brought about by consumption-downstream GVC positioning promotes CEP. • The higher the export market efficiency, the larger the environmental improvement effect is. How firms' GVC positioning affects their environmental performance is an interesting but under-researched issue. This paper explores the relationship between GVC positioning and environmental performance from the firm level for the first time. Based on the Chinese Industrial Enterprise Pollution Emission Database from 2001 to 2013 combined with OECD's TiVA and China Customs databases, this paper identifies the existence of a right-side smile curve between firms' GVC positioning and Corporate Environmental Performance (CEP, represented by firms' SO2 emission intensity) among firms in developed regions, supported by industrial policies and with large scale, implying that the improvement of CEP could be driven by firms' downstream climbing in GVC. Mechanism analysis reveals that the demand diversity brought about by consumption-downstream GVC positioning expands firms' imported intermediate goods and enhances firms' innovation to promote CEP. The environmental improvement effects are more substantial when the export market is more efficient. [ABSTRACT FROM AUTHOR]

Against the backdrop of frequent international trade frictions, reducing external risks in export trade through industrial policies has become crucial for China's high-quality and steady foreign trade development. This paper examines the impact of development zone upgrading policies on the diversification of firm product exports by using a time-varying difference-in-differences model. We find that after the upgrading of development zones, the diversification of firm product exports increases by 2.13%, and concentration decreases by 1.33%. Moreover, this policy has a stronger impact on the diversification level of product exports for firms upgraded to customs special supervision areas, located inland, and engaged in general trade. These conclusions remain robust even after conducting additional robustness tests using alternative measures of the dependent variable, different identification methods for development zone upgrading, and controlling for other industrial policy effects. Furthermore, the upgrading of development zones improves export diversification through three main channels: enhancing firm innovation capabilities, optimizing management efficiency, and providing financial support to firms. [ABSTRACT FROM AUTHOR]

The construction industry has long been regarded as a relatively conservative and less innovative sector. Adjusting corporate governance structure is an effective method to promote innovation in the construction industry, as it can internally address the reluctance to innovate within companies. While it is widely known that the chief executive officer (CEO) plays a crucial role in firm innovation, few studies have explored the effects of CEO duality on innovation from a corporate governance aspect, which serves as a pressing need for construction industry. This study investigates the influence of CEO duality and its important moderating variable, CEO overconfidence, on corporate innovation based on a sample of stock-listed China construction companies and their patent data from 2009 to 2022. Quantile regression is applied to deeply investigate the variation in the impact of CEO duality throughout different conditional quantiles of the construction innovation performance distribution. The results demonstrate a favorable correlation between CEO duality and corporate innovation performance, and the promotion effect of CEO duality is more significant for firms with lower innovation performance. Additionally, CEO overconfidence negatively moderates the impact of CEO duality on corporate innovation. These findings indicate that CEO duality plays a noteworthy role in promoting corporate innovation within the construction industry and more effective corporate governance mechanism is needed to control CEO overconfidence, which promotes the negative impact of CEO duality. The research provides a research framework for exploring the dynamic impact of corporate governance structures on firm performance in the future. The results of this study are of significant importance for both the theoretical understanding and practical implementation of corporate governance mechanisms in the construction industry. [ABSTRACT FROM AUTHOR]

OVERVIEW: Firms are increasingly conducting innovation jointly with external partners so they can achieve innovations they could not achieve alone. This approach reduces investments and opens up novel opportunities, but it also highlights the importance of managing and selecting the proper partners. We identified three partner types: Free Riders, Passengers, and Copilots. According to our research, these partners have distinct behaviors and need to be managed differently based on their motivation. We introduce each partner type, distinguish them according to their motivation, and present strategies on how to manage them effectively. PRACTITIONER TAKEAWAYS: Many criteria can be used to assess potential partners for joint innovation activities—but motivation has proven to be particularly critical. Firms should avoid partners whose primary interest is piggybacking off the learning and marketing effects; the ideal partner should have a strong interest in the joint innovation and its business impact. Even partners with strong motivation require differentiation: Highly committed partners are ideal for creating key components, while other partners are better suited to developing less critical components. [ABSTRACT FROM AUTHOR]

Using the staggered adoption of natural gas in China, we examine how energy substitution policy affects firm innovation. We find that firm innovation significantly increases following the passage of energy substitution policy. Moreover, the positive effect of energy substitution policy on firm innovation is more pronounced when firms are private, small-sized, located in low economic development regions. The channel test shows that firms adopting energy substitution policy can improve financial condition. Finally, we find that energy substitution policy has positive and significant effect on innovation productivity. [ABSTRACT FROM AUTHOR]

Research Summary: Today's innovations rely on scientific discoveries of the past, yet only some corporate R&D builds directly on scientific output. In this article, we analyze U.S. patents to investigate how firms generate value by building on prior art "closer" to science. We show that patent value is decreasing in distance‐to‐science. Overall, we find a science premium within firms ranging from 5.0 to 18.3%. If we allow for firm sorting into different modes of R&D based on their relative advantage, that is, when we do not control for firm fixed effects, we find an even larger science premium: patents building directly on scientific publications are 4.0–42.3% more valuable than patents in the same technology that are not directly based on science. Managerial Summary: Building on scientific research allows firms to capture significantly more value from their inventions. By analyzing U.S. patents and their linkages to scientific publications, our paper describes the relationship between invention "proximity" to the scientific literature and public firm valuations—as measured in abnormal stock market returns. Our findings indicate that patents building on science are 5.0–18.3% more valuable. If we account for variations in R&D strategies among firms, the premium becomes even larger, ranging from 4.0 to 42.3%. Further, the results show that the value‐enhancing benefits of integrating scientific insights into R&D are greater for firms with more experience building on science. Together, the results underscore the competitive advantages of using science as a foundation for corporate innovation. [ABSTRACT FROM AUTHOR]

This article examines how trade policy shocks impact firm innovation indirectly through information sharing across firms. Using a unique dataset of Chinese firms between 2000 and 2013, we identify connections between firms by exploiting spillover effects of antidumping. Empirical results show that antidumping has negative spillover effects on firm innovation through information exchanges across firms in market or product networks. Trade restrictions on extensive and intensive margins work as important channels through which the networks impact firm innovation. Our findings provide new empirical evidence on indirect effects of antidumping on firm innovation and better understanding on channels of trade policy shocks. [ABSTRACT FROM AUTHOR]

Exploiting an exogenous decrease in analyst access to private information, we show that firms with analyst following (test firms) experience a significant reduction in R&D investment, relative to firms without analyst following (control firms), after Reg FD. We also document that the negative impact on firms' R&D investment after Reg FD is borne out in firms' innovation outputs measured by patents. Additional analysis reveals that the decrease in R&D investment concentrates among test firms followed by influential analysts who likely had access to private information before Reg FD and among test firms facing disincentives to invest in R&D due to takeover pressure. Our inferences remain robust to various tests addressing potential bias arising from possible systematic differences between test and control firms. Overall this study demonstrates that private disclosures of R&D information through analysts mitigate managers' R&D investment disincentives and facilitate innovation but that this channel is impeded by Reg FD. [ABSTRACT FROM AUTHOR]

Research about innovation management explores how the future is created—who is creating it (organizations, collaborations, etc.), for what aims (customer satisfaction, market performance, etc.), and with what broader effects (social, environmental, etc.). With this extended essay, we explore the potential futures of innovation management research in three ways. First, we briefly review the history of past research agendas and priorities published in the Journal of Product Innovation Management (JPIM), highlighting three broad topic areas (technological, social/environmental, and organizational) that have emerged over time and their potential disruptive implications for innovation management research. Second, we describe the outcome of a gathering of leading scholars in innovation management tasked with the challenge of identifying critical research paths for our field. This collaboration resulted in five "deep dive" essays into areas ripe for innovation management research in the years ahead: liquid innovation, artificial intelligence in innovation, business model innovation, public value innovation, and responsible innovation. Third, we reflect on this expansive effort and offer a discussion of implications (tensions, challenges, and opportunities) for future innovation management scholarship. [ABSTRACT FROM AUTHOR]

In today's dynamic business environment, business model innovation (BMI) has become a strategic lever that businesses can harness to unlock new revenue opportunities and fortify their long‐term competitive edge. BMI often hinges on the exchange relationships between chief executive officers (CEOs) and their top management team (TMT) members. However, in practice, CEOs and TMT members often have incongruent perceptions of these relationships, which may impede them from making joint efforts to achieve BMI. When such incongruence arises, relying solely on either the CEO's or the TMT members' perceptions of exchange quality might provide an incomplete understanding of the effect of CEO–TMT exchange quality on BMI. In this study, we investigate how CEO–TMT exchange quality incongruence influences BMI under various levels of environmental dynamism. Using archival industry data and matched survey data from 618 CEOs and 1854 TMT members in China, the polynomial regression and response surface analyses indicate that CEO–TMT exchange quality incongruence negatively affects BMI. This finding suggests that while high perceptions of exchange quality by both CEOs and TMTs independently contribute to BMI, an incongruent perception of exchange quality between CEOs and TMT members can undermine the success of BMI. Moreover, high levels of environmental dynamism aggravate the negative effect of CEO–TMT exchange quality incongruence on BMI. These findings enable us to offer new theoretical insights regarding the influence of the CEO–TMT exchange quality on BMI, thus complementing existing studies on antecedents of BMI and enriching literature on the outcomes of the CEO–TMT interface. Additionally, this study offers practical guidance for enhancing BMI through effective management of incongruent perceptions of CEO–TMT exchanges. [ABSTRACT FROM AUTHOR]

This study investigates the influence of ascribed and achieved political connections on corporate strategies of incremental versus radical innovation. The corporate political strategy literature maintains that while politically connected firms have access to resources controlled by the government, they also have an obligation to reciprocate for this access by fulfilling government expectations. We integrate an institutional perspective with the political strategy literature to develop the argument that ascribed political connections enhance incremental innovation because firms with these connections will tend to innovate just enough to meet government expectations. In contrast, firms with achieved political connections will tend to prefer radical innovation because these innovations help them to maintain their relationships with the government and expand their competitive advantage in the market. Furthermore, we propose that these effects depend on firms' innovation orientation, captured by the firms' technological capability, industry characteristics, and the innovation context of their geographical region. Our predictions are largely supported by analysis of a panel dataset of privately controlled, publicly listed Chinese firms during the period 2008 to 2018. Our findings reveal that the positive effect of ascribed political connections on incremental innovation is less salient when a firm has stronger technological capability, or when a firm operates in a high‐tech industry or a region with a strong innovative climate. Conversely, the positive influence of achieved political connections on radical innovation is stronger when a firm has stronger technological capability, or when a firm competes in a high‐tech industry or is located in a region with a strong innovative climate. We also discuss the important implications for firms and the government. [ABSTRACT FROM AUTHOR]

An extensive empirical literature shows the important role that information sources have on firm innovation. However, there is scarce evidence on the different typologies of between technological and non‐technological innovations and their expectations. We investigate how the wide number of information sources affect the propensity to innovate and its future expectations. At the methodological level, we apply a multivariate Probit to the Innovation Survey of Chilean companies (2013–2016). Our results show that internal information sources, suppliers, clients and the Internet are significantly associated with the development of technological and non‐technological innovations. Social innovations are affected only by internal and by market (primarily from consultancy firms) sources of information. Finally, internal information sources and the Internet affect firms' expectations to innovate. Our results indicate the importance of different information flows and how they may drive the generation of innovations. [ABSTRACT FROM AUTHOR]

Industry 4.0 has created new opportunities for enterprise innovation by leveraging emerging technologies. External innovation represents a valuable source of ideas and knowledge for internal innovation, and enterprises are increasingly leveraging their supplier relationships to gain a competitive advantage. Some researchers suggest that suppliers enhance the effectiveness and outcomes of lean innovation. To deepen our understanding of the relationship between supplier orientation and innovation outcomes, this study explores the mechanisms through which supplier orientation contributes to enhancing innovation performance, with a specific focus on the role of supplier orientation in improving supply management innovativeness and innovation partnerships. Survey data from 209 Chinese firms engaged in innovation practices was analyzed using a hierarchical regression based on resource dependency theory. Results reveal that supplier orientation positively influences supply management innovativeness and innovation partnerships. Supply management innovativeness and buyer–supplier innovation partnerships both contribute to improved innovation performance. Our findings suggest that the buyer–supplier innovation partnership plays a moderating role in the relationship between supply management innovativeness and innovation performance. These insights provide a valuable basis for developing innovative strategies and managing inter‐firm relationships, emphasizing the importance of supplier relationship management practices in enhancing firms' competitiveness and performance by leveraging external resources and knowledge. [ABSTRACT FROM AUTHOR]

This paper aims to examine the influence of academic founders on firm innovation performance from the perspective of equity distribution in entrepreneurial teams. Based on the prospectus data of 466 science and technology enterprises that applied for registration on the STAR Market from 2016 to 2020, we use textual analysis to classify founder identities into academic founder, technical founder, and business founder. Our results show that the performance of technical innovation in Sci‐Tech enterprises is optimal for academic founder‐led firms, followed by technical founders, and finally business founders. Ownership structure suppresses the positive direct relationship between the academic founder and innovation performance. [ABSTRACT FROM AUTHOR]

This paper investigates the impact and mechanism of the China‐U.S. trade war on firm innovation in China exploiting the trade war as a quasi‐natural experiment using firm‐level data from 2015 to 2020. We apply textual analysis to annual reports of listed firms to identify treatment and control groups. Our DID estimates show that while the trade war is a negative shock, it has increased the number of total patent applications, invention patent applications, and non‐invention patent applications by 6.0%, 3.7%, and 4.1%, respectively. We also observe that government subsidies could help firms resist adverse shocks on time with more innovation outcomes. Furthermore, we find the pertinence of government subsidy. The government tended to grant subsidies to firms that have trade connections with the U.S. and firms would use subsidies for R&D to increase innovation. Overall, we find that the trade war prompts the government to increase subsidies for firms, thereby boosting innovation. [ABSTRACT FROM AUTHOR]

This paper examines the mediating effect of R&D alliance network dynamics on the relationship between technology convergence and firm innovation quality, it further investigates the moderating effect of degree assortativity in the inventor network. An empirical analysis is conducted based on a panel negative binomial regression model with data of Chinese high‐tech firms listed on the Shanghai and Shenzhen Stock from 2000 to 2018. The results show that novel technology convergence not only contributes to innovation quality directly but also indirectly through ego‐network expansion. The relationship between reinforced technology convergence and innovation quality is inverted U‐shaped, partially mediated by ego‐network stability. In addition, degree assortativity suppresses the effects of novel technology convergence on ego‐network expansion and innovation quality and steepens the inverted U‐shaped relationships of reinforced technology convergence with ego‐network stability and innovation quality. This paper contributes to the relevant literature by revealing the links between technology convergence, ego‐network dynamics, and innovation quality, and emphasizing the importance of inventor collaboration ties formation mechanism in knowledge searching and convergent innovation. Furthermore, the conclusion provides managerial suggestions for high‐tech firms to coordinate internal and external resources to improve technical impacts. [ABSTRACT FROM AUTHOR]

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We investigate how management quality moderates the impact of carbon pricing on Chinese firms. Based on interviews with managers and lead engineers at manufacturing firms in Hubei and Beijing, we construct a novel index of climate-change-related management practices and link it to firm data from various sources. We document higher average productivity and more green innovation among firms that are well managed according to the index. In an event study of the introduction of regional cap-and-trade schemes for CO2, we analyze how management quality interacts with treatment. While treated firms reduced coal consumption more than control firms, this effect is statistically significant only for well-managed firms. The reduction could have been 25% greater if badly managed firms had been well managed. Our study highlights that good management practices, in particular energy monitoring, enhance the effectiveness of market-based climate policies by enabling firms to rationally comply with those policies. [ABSTRACT FROM AUTHOR]

This article studies educational decisions, focusing on intentions of enrolment in master's education of STEM bachelor students. Integrating human capital theory with concepts of cultural and social capital, we propose a two-level model for the choice of pursuing master's degrees. First level (individual) includes factors covering individual habitus and organisational habitus (higher education institutions of bachelor students), while the second level (local) reflects the local business innovation environment. The proposed model was empirically tested on data collected from a sample of STEM and non-STEM bachelor students enroled in 10 public universities located in Romania. The results show that STEM students display a higher propensity to enrol in master's education, and the gap between STEM and non-STEM majors varies across regions. We find that educational decisions related to master's degrees are shaped by local circumstances reflecting the business innovation intensity as more innovative business contexts are less conducive for enrolment of students in master programmes. In addition, the findings of the study show that local circumstances are not independent of the field of study when shaping students' educational choices, highlighting the complex way in which individual and local levels factors interplay and shape educational decisions. STEM students' propensity to enrol in master's degrees is more influenced by the innovative business environment than other students. This study has implications for higher education policy and practice aiming to support longer educational careers in STEM. [ABSTRACT FROM AUTHOR]

Based on the perspective of the firm life cycle, this study constructs a complex bank-firm network system model under the influence of four technology financial policies (special funds, tax incentives, loan subsidies, and risk sharing) by depicting the behaviours of scientific innovation firms and banks. It examines the impact of the technology financial policies on the systemic risk of the bank-firm network system. Furthermore, this study examines the implementation effects of different technology financial policies at the three stages of start-up, growth, and maturity of scientific innovation firms. Based on the study, loan subsidies are the most effective of all four technology financial policies; however, the strength of the loan subsidies should be controlled in order to avoid excessive bank-firm credit exposure. Moreover, the study finds that policy support for scientific innovation firms is most effective during the start-up stage. [ABSTRACT FROM AUTHOR]

Innovation is increasingly recognized as a linchpin for CSR transformation within organizations. Beyond mere compliance, businesses are embracing innovation as a strategic imperative to address societal challenges. Using panel-data analysis spanning from 2014 to 2023, this paper investigates the relationship between innovation strategies and Corporate Social Responsibility (CSR) performance, with a special emphasis on the moderating effect of Green Innovation (GI). We examine how panel data analysis shows, green innovation is found to be an important moderator that lessens the possible harm that China's high-tech may cause to CSR. Results further shows that green innovations can positively moderate relationship between China's high-tech and CSR. Further, we found several other key variables (state equity, innovation level, market value) to improve firm's innovations and CSR performance. The findings of this study have important implications for practitioners to give sustainable innovation strategies top priority, and policymakers are advised to encourage ecologically friendly behaviour. [ABSTRACT FROM AUTHOR]