The Role of Human Capital: Evidence from Patent Generation

63 Pages Posted: 8 Feb 2016 Last revised: 14 May 2017

See all articles by Tong Liu

Tong Liu

University of Pennsylvania - Finance Department

Yifei Mao

Cornell University - SC Johnson College of Business - Finance Department

Xuan Tian

Tsinghua University - PBC School of Finance

Date Written: May 10, 2017

Abstract

Firms exhibit persistence in innovation output. This paper focuses on the role played by individual inventors. Compared to firm organizational capital, human capital embedded in inventors explains a majority of the variation in innovation performance but much less in innovation style. Inventors contribute more when they are better networked, in firms with higher inventor mobility, and in industries in which innovation is more difficult. Additional tests suggest that our main findings are unlikely driven by inventors’ endogenous moving. This paper highlights the importance of human capital in enhancing firm innovation and sheds new light on the theory of the firm.

Keywords: Organizational capital, Human capital, Firms, Inventors, Innovation persistence

JEL Classification: G30, G32, O32

Suggested Citation

Liu, Tong and Mao, Yifei and Tian, Xuan, The Role of Human Capital: Evidence from Patent Generation (May 10, 2017). Kelley School of Business Research Paper No. 16-17. Available at SSRN: https://ssrn.com/abstract=2728924 or http://dx.doi.org/10.2139/ssrn.2728924

Tong Liu

University of Pennsylvania - Finance Department ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104
United States

Yifei Mao (Contact Author)

Cornell University - SC Johnson College of Business - Finance Department ( email )

Ithaca, NY 14850
United States

Xuan Tian

Tsinghua University - PBC School of Finance ( email )

No. 43, Chengfu Road
Haidian District
Beijing 100083
China
+86-10-62794103 (Phone)

HOME PAGE: http://xuantian.info/

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