In the Mood for Creativity: Weather-Induced Mood, Inventor Performance, and Firm Value
62 Pages Posted: 24 May 2016 Last revised: 27 Jul 2018
Date Written: July 18, 2018
Using inventors employed by U.S. publicly listed firms, we examine the relation between mood and inventor performance. Utilizing sunshine exposure as a time-varying proxy for inventor mood, we show that good mood is associated with the creation of more valuable patents. When aggregated at the firm level, the collective mood of corporate inventors has significant implications for corporate innovation and firm value. Improved creativity, initiative at work, and strategic focus are identified as the mechanisms through which good mood stimulates inventor performance. Our findings contribute to a growing body of literature highlighting the real effects of mood on economic outcomes.
Keywords: Mood; Inventor performance; innovation; creativity
JEL Classification: G39, J33, M52, O31
Suggested Citation: Suggested Citation