Technological Importance and Economic Value of Innovations in Large Family and Founder Firms: An Analysis of Patent Data
University of Trier - Faculty of Management; Erasmus University Rotterdam - Department of Applied Economics
HEC Montreal; University of Alberta - Department of Strategic Management and Organization
University of Alberta - Department of Strategic Management and Organization
Technische Universität München (TUM)
October 11, 2010
Prior research has analyzed R&D spending in family and founder firms. Yet, little is known about the technological importance and economic value of innovations in these types of firms. Using patent and patent citation data, we show that founder-managed firms, which we argue favor an entrepreneurial orientation, produce innovations with superior technological significance and economic value when compared to other firms, even controlling for R&D spending. By contrast family-managed firms, many of which, we argue, pursue socioemotional wealth for the family, produce innovations of less technological significance and economic value, again, controlling for R&D spending.
Number of Pages in PDF File: 42
Keywords: Innovation, family firms, founder firms, patents, patent citations
JEL Classification: G32, M13, O31working papers series
Date posted: October 23, 2010 ; Last revised: May 10, 2013
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