Abstract
This paper compares the innovation performance of state-owned firms owned by different levels of government, with that of privately-owned firms. Analysis of a 116-firm panel dataset for the Chinese solar photovoltaic industry from 1999-2015 suggests that government’s financial support increases the quantity of innovation outputs. However, the efficiency in utilising the financial resources is determined by the effectiveness of agency relationships. Applying agency theory to the Chinese politico-economic context indicates that innovation quality depends on length and complexity of agency chains, engagement of monitors, and the tenure of managers. By using forward citations and proportion of patents in active use, two measures of innovation quality that are more valid and reliable than patent counts, our study finds that municipallyowned firms are superior in terms of innovation productivity to those under central ownership,
and comparable to private firms.
and comparable to private firms.
| Original language | English |
|---|---|
| Article number | 2150026 |
| Number of pages | 1 |
| Journal | International Journal of Innovation Management |
| Volume | 25 |
| Issue number | 3 |
| Early online date | 23 Jul 2020 |
| DOIs | |
| Publication status | Published - Apr 2021 |
Keywords
- agency theory
- governance of innovation
- level of state ownershi
- innovation performance
- solar photovoltaic industry
- Innovation performance
Access to Document
- Cai_et_al_IJIM_StateOwnershipAnd_AAM
Electronic version of an article published as [Journal, Volume, Issue, Year, Pages] [Article DOI] © [copyright World Scientific Publishing Company] [Journal URL]