Ownership and Innovation: Evidence from Switzerland

33 Pages Posted: 2 Mar 2016 Last revised: 26 Sep 2017

See all articles by Marcello Puca

Marcello Puca

University of Bergamo; Webster University - Webster University Geneva

Massimiliano Vatiero

Università della Svizzera italiana; University of Pisa - Department of Economics

Date Written: September 26, 2017

Abstract

Both theoretical and empirical studies provide mixed predictions when looking at the impact of corporate ownership on innovation. Contributing to this discussion, this paper conducts a causality test of the relation between the ownership concentration of firms and their innovation, measured by patents and patent citations. Using a sample that contains annual data of about 150 companies over the 1990-2010 period, we address potential endogeneity concerns using the introduction of the Swiss takeover law as an instrumental variable. In line with the “hold-up” view, we find higher ownership concentration leading to more firm innovation.

Keywords: Takeover Law, Innovation, Patents, R&D, Corporate Ownership.

JEL Classification: D21, G32, G34, K22, O31

Suggested Citation

Puca, Marcello and Vatiero, Massimiliano, Ownership and Innovation: Evidence from Switzerland (September 26, 2017). Available at SSRN: https://ssrn.com/abstract=2739880 or http://dx.doi.org/10.2139/ssrn.2739880

Marcello Puca (Contact Author)

University of Bergamo ( email )

Via Salvecchio, 19
Bergamo, 24129
Italy

Webster University - Webster University Geneva ( email )

Route de Collex 15
Bellevue, CH- 1293
Switzerland

Massimiliano Vatiero

Università della Svizzera italiana ( email )

Via Giuseppe Buffi 13
Lugano, Ticino 6900
Switzerland

University of Pisa - Department of Economics ( email )

via Ridolfi 10
I-56100 Pisa, PI 56100
Italy

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