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Full-Text Articles in Business
“High” Innovators? Marijuana Legalization And Regional Innovation, Stephanihe Cheng, Pengkai Lin, Yinliang Tan, Yuchen Zhang
“High” Innovators? Marijuana Legalization And Regional Innovation, Stephanihe Cheng, Pengkai Lin, Yinliang Tan, Yuchen Zhang
Research Collection School Of Accountancy
The past three decades have witnessed a tremendous shift in public health policies towards marijuana legalization in the U.S. Adopting the process-based view of innovation, we hypothesize that marijuana's increased use and related consequences after its legalization affect innovators’ behavior and social environment during the innovation process, which in turn impacts regional innovation. Utilizing the staggered adoption of medical marijuana laws by 20 states between 1996 and 2013 as a quasi-experimental setting, we find that legalizing medical marijuana reduces the overall output of regional innovation, as proxied by patents’ total forward-citation count aggregated by innovator location. Further analyses decomposing the …
Knowledge Recombination And Inventor Networks: The Asymmetric Effects Of Embeddedness On Knowledge Reuse And Impact, Simon J.D. Schillebeeckx, Yimin Lin, Gerard George, Tufool Alnuaimi
Knowledge Recombination And Inventor Networks: The Asymmetric Effects Of Embeddedness On Knowledge Reuse And Impact, Simon J.D. Schillebeeckx, Yimin Lin, Gerard George, Tufool Alnuaimi
Research Collection Lee Kong Chian School Of Business
Inventors are triply embedded. They are embedded in a network of knowledge components that they can reuse in future inventions. They are embedded in an inventor network, where internal embeddedness (the strength of relationships between focal inventors and their colleagues upon whose knowledge the team builds) and network centrality influence access to information. Finally, they are embedded in the firm, with its specific routines that favor external or internal knowledge search, what we call search orientation. Using a sample of 39,785 semiconductor patents, we study the pattern of knowledge reuse, or the recombination of technologically similar components, on invention impact. …
Do Innovative Firms Communicate More? Evidence From The Relation Between Patenting And Management Guidance, Sterling Huang, Jeffrey Ng, Tharindra Ranashinghe, Mingyue Zhang
Do Innovative Firms Communicate More? Evidence From The Relation Between Patenting And Management Guidance, Sterling Huang, Jeffrey Ng, Tharindra Ranashinghe, Mingyue Zhang
Research Collection School Of Accountancy
Successful innovations could induce more disclosure if the information asymmetry between the firm and its investors about post-innovation outcomes leads investors to demand more information. However, such innovations also likely entail greater proprietary cost concerns, which deter disclosure. This paper uses patent grants to examine the effect of innovation success on management guidance behavior. We find that more management guidance follows patent grants, suggesting that despite disclosure cost concerns, firms with successful innovations do respond to information demand. This association is stronger after enactment of Regulation Fair Disclosure and for firms with greater institutional investor ownership, further highlighting the role …
The Innovation Effect Of Dual-Class Shares: New Evidence From Us Firms, Xiaping Cao, Tiecheng Leng, Jeremy C. Goh, Paul Malatesta
The Innovation Effect Of Dual-Class Shares: New Evidence From Us Firms, Xiaping Cao, Tiecheng Leng, Jeremy C. Goh, Paul Malatesta
Research Collection Lee Kong Chian School Of Business
The proliferation of dual-class structures in the US stock market presents a controversial trend since such shares are traditionally deemed to damage governance quality. We study the relationship between 362 firms with dual-class shares and their innovativeness using patent citations from Google Patents over the 1976 through 2006 period. We find dual-class shares have significant innovation effect in high-tech sectors, hard-to-innovate industries, firms with higher external takeover threat and firms heavily dependent on external equity financing. We also document a positive causality relationship between dual-class structures and the quality of innovation. The channel for this causal relationship is the protection …
When Do Expert Teams Fail To Create Impactful Inventions?, Simon J.D. Schillebeeckx, Yimin Lin, Gerard George
When Do Expert Teams Fail To Create Impactful Inventions?, Simon J.D. Schillebeeckx, Yimin Lin, Gerard George
Research Collection Lee Kong Chian School Of Business
We investigate the salience of expertise in creating high impact inventions and question experts’ ability to deploy novel ideas. Specifically, we examine the relationships between expertise, component originality, and a team's structural holes’ position in the collaborative network and propose that, in relative terms, expert teams create lower impact inventions if they deploy more original components and if they occupy structural holes. We test and confirm our hypotheses in a sample of semiconductor firms. In post‐hoc analyses, we find a three‐way interaction where the negative effect of structural holes almost disappears when an expert team experiments with original components whereas …
Appropriability And The Retrieval Of Knowledge After Spillovers, Tufool Alnuaimi, Gerard George
Appropriability And The Retrieval Of Knowledge After Spillovers, Tufool Alnuaimi, Gerard George
Research Collection Lee Kong Chian School Of Business
Firms create and capture value through innovation. In technology-driven firms, there has been an explicit emphasis on appropriability through imitation deterrence and cumulative inventions that build on prior firm innovation. We introduce systematic empirical evidence for a third mechanism of appropriability namely, knowledge retrieval, which is defined as the re-absorption of previously spilled knowledge. We extend previous studies which consider technological complexity and organizational coupling as predictors of appropriability by examining their impact on knowledge retrieval. We find that technological complexity has a curvilinear relationship with retrieval while organizational coupling has a negative relationship. We discuss the implications of these …
Patents, Innovation, And Performance Of Venture Capital-Backed Ipos, Jerry X. Cao, Fuwei Jiang, Jay R Ritter
Patents, Innovation, And Performance Of Venture Capital-Backed Ipos, Jerry X. Cao, Fuwei Jiang, Jay R Ritter
Research Collection Lee Kong Chian School Of Business
We study the predictive power of patents on the long-run performance of venture capital (VC)-backed initial public offerings (IPOs). We show that VC-backed IPOs that have at least one patent at the time of the IPO substantially outperform other VC-backed IPOs, with 3-year buy-and-hold market-adjusted returns of -7.1% vs. -23.3%. On average, VC-backed IPOs without patents perform similarly to non-VC-backed IPOs. We also report that VC-backed IPOs from 1981-1998 outperformed other IPOs, but the pattern has reversed for IPOs from 1999-2006. Although a smaller proportion of non-VC-backed IPOs possess patents, those with patents also outperform those without patents.
Do Managers Use Meeting Analyst Forecasts To Signal Private Information? Evidence From Patent Citations, Katherine Gunny, Tracey Chunqi Zhang
Do Managers Use Meeting Analyst Forecasts To Signal Private Information? Evidence From Patent Citations, Katherine Gunny, Tracey Chunqi Zhang
Research Collection School Of Accountancy
This study examines whether firms manage earnings to meet analyst forecasts to signal superior future performance. Prior research finds that firms use earnings management to just meet analyst forecasts and that these firms have a positive association with future performance (Bartov et al., 2002). There are two potential explanations for the positive association – signaling and attaining benefits that allow for better future performance (i.e., the real benefits explanation). Prior studies cannot provide evidence of signaling because they do not control for the real benefits explanation. Our research design enables us to control for the real benefits explanation because we …
Not With My Own: Long-Term Effects Of Cross-Country Collaboration On Subsidiary Innovation In Emerging Economies Versus Advanced Economies, Tufool Alnuaimi, Jasjit Singh, Gerard George
Not With My Own: Long-Term Effects Of Cross-Country Collaboration On Subsidiary Innovation In Emerging Economies Versus Advanced Economies, Tufool Alnuaimi, Jasjit Singh, Gerard George
Research Collection Lee Kong Chian School Of Business
Prior literature has established that international collaboration on R&D is an important means for generating new and impactful ideas through the cross-border integration of knowledge. We show that cross-country collaboration improves not just the resulting ideas, but also has a long-term benefit for the involved inventors in terms of continuing to generate higher-impact ideas in the future. However, our results also show that the improved performance of specific inventors in a multinational corporation subsidiary does not translate to broader subsidiary-level capabilities at innovation. One possible explanation might be that inventors obtaining international exposure often do not develop collaborative ties with …
Entry Into New Niches: The Effects Of Firm Age And The Expansion Of Technological Capabilities On Innovative Output And Impact, Reddi Kotha, Yangfeng Zheng, Gerard George
Entry Into New Niches: The Effects Of Firm Age And The Expansion Of Technological Capabilities On Innovative Output And Impact, Reddi Kotha, Yangfeng Zheng, Gerard George
Research Collection Lee Kong Chian School Of Business
We provide evidence that young firms systematically differ from older firms in their innovative output when they enter ‘new to the firm’ technological niches. We analyze data from 128 biotechnology firms since their inception and track these firms over time. Our analyses reveal that the organizational age at which the firm branches into new technological niches significantly influences its innovative activity. We refine the focus of the extant literature by separately examining the effects of branching on the quantity of innovative output and the impact that this output has on the technology domain. Subsequent to branching into new niches, we …
Does Patent Strategy Shape The Long-Run Supply Of Public Knowledge? Evidence From Human Genetics, Kenneth Guang-Lih Huang, Fiona Murray
Does Patent Strategy Shape The Long-Run Supply Of Public Knowledge? Evidence From Human Genetics, Kenneth Guang-Lih Huang, Fiona Murray
Research Collection Lee Kong Chian School Of Business
Knowledge-based firms seeking competitive advantage often draw on the public knowledge stream (ideas embedded in public commons institutions) as the foundation for private knowledge (ideas firms protect through private intellectual property [IP] institutions). However, understanding of the converse relationship—the impact of private knowledge strategies on public knowledge production—is limited. We examine this question in human genetics, where policy makers debate expanding IP ownership over the human genome. Our difference-in-differences estimates show that gene patents decrease public genetic knowledge, with broader patent scope, private sector ownership, patent thickets, fragmented patent ownership, and a gene's commercial relevance exacerbating their effect.