Tips to navigate the program:
- Overview of all papers on a specific day: click on the day (e.g. Date: Thursday, 24/Aug/2017). To download papers, you will need to access the session by clicking on its title first.
- Program index: click on the Authors tab below.
- Location name: to display all sessions taking place in that room
- Search box: to search for authors, papers and sessions.
Please notes that changes in the program might occur.
If your name is not displayed in the program, please register in our conference system.
If your paper information is not up to date, please send us an email at email@example.com.
Measuring Innovation Around the World
1ESSEC Business School; 2National University of Singapore; 3University of New South Wales
Research on corporate innovation often focuses on firms with positive US patent activity and reported R&D, thereby excluding over 90% of the firms in Compustat. By exploiting data from 30 global patent offices, we investigate the nature of missing innovation data in the US and around the world. Our central research question is how studies of innovation, or those that rely on measures of innovation as a control variable, should assess firms without reported R&D or patent activity. Our preliminary analyses indicate systematic and predictable patterns across firms and countries for missing patents and R&D. We then compare the empirical efficacy of excluding firms without US patents or without reported R&D to simple replacement methods, and to various econometric solutions for missing innovation data. We show how excluding or deleting firms without US patents or reported R&D, even in studies of just US firms, provides biased coefficient estimates and standard errors. We also demonstrate how the biases from simply excluding the missing observations lead to specific distortions in tests related to corporate growth and country level innovation capacity. We then discuss best practices and provide specific guidelines in handling missing R&D and patent data.
A Text-Based Analysis of Corporate Innovation
University of Colorado Boulder
We construct a new text-based measure of innovation using the content of analyst reports of S&P 500 firms. Our text-based measure captures innovation that is not measured by existing proxies, which is the case when innovation is not financed by R&D and is not patented. The text-based innovation measure is useful even within the set of patenting firms because it strongly correlates with valuable patents, which likely capture true innovation. Indeed, the text-based innovation measure is robustly related to greater firm performance and growth opportunities for up to four years, and these value implications hold just as strongly for non-patenting firms. Digging deeper, highly-innovative firms according to our text-based measure become innovative by producing innovative systems (e.g., Walmart’s cross-geography logistics). Consistent with this interpretation, we find that highly-innovative firms are more acquisitive, using acquisitions of relatively smaller firms to augment their innovative systems. Taken together, these findings provide deeper insight into the value of innovation more broadly, not just innovation that can be patented.
Human Capital, Skilled Immigrants, and Innovation
1Georgia State University; 2University of Colorado Denver
Prior to the 2004 immigration policy shock, innovative US firms, by acquiring human capital of skilled immigrant workers, had effectively utilized an alternative to investment in the existing (domestic) human capital stock. Post-shock, firm-level innovation outcome, measured by patents and citations, declined significantly for the skilled immigrant-dependent firms. These firms responded to the policy shock by a preemptive reduction in R&D investment, retaining more of the incumbent immigrant workers to offset the reduction in new immigrant hiring, and hiring fewer workers. There has been no impact of the policy shock on the equity return for the immigrant-dependent firms around the shock.
Contact and Legal Notice · Contact Address:
Conference: EFA 2017
|Conference Software -
ConfTool Pro 2.6.109+TC
© 2001 - 2017 by H. Weinreich, Hamburg, Germany