Innovation at State-Owned Enterprises

73 Pages Posted: 28 Mar 2018 Last revised: 24 Sep 2019

See all articles by Bernardo Bortolotti

Bernardo Bortolotti

Bocconi University; University of Turin

Veljko Fotak

School of Management, University at Buffalo (SUNY); Sovereign Investment Lab, Baffi Carefin, Bocconi University

Brian Wolfe

University of Texas at San Antonio

Date Written: September 3, 2019

Abstract

We investigate the impact of state ownership on the innovativeness of European listed firms. We find that state-owned enterprises (SOEs) invest more in R&D than private firms, thanks to easier access to bank financing. However, SOEs controlled by politicians with electoral concerns and SOEs with politically appointed managers invest no more than private firms. On the output side, SOEs produce fewer patents per dollar invested. We also find evidence that government-controlled SOEs produce patents with more citations, oriented towards sustainable-technologies, but with lower commercial value, consistent with the view that they emphasize innovation with public good characteristics over commercial returns.

Keywords: innovation, state ownership

JEL Classification: G32, G15, G38

Suggested Citation

Bortolotti, Bernardo and Fotak, Veljko and Wolfe, Brian, Innovation at State-Owned Enterprises (September 3, 2019). BAFFI CAREFIN Centre Research Paper No. 2018-72, Available at SSRN: https://ssrn.com/abstract=3150280 or http://dx.doi.org/10.2139/ssrn.3150280

Bernardo Bortolotti (Contact Author)

Bocconi University ( email )

Via Sarfatti 25
Milan, MI 20136
Italy

University of Turin

Via Po 53
Torino, Turin - Piedmont 10100
Italy

Veljko Fotak

School of Management, University at Buffalo (SUNY) ( email )

School of Management, University at Buffalo
236 Jacobs Management Center
Buffalo, NY 14260
United States
+1 716-645-1541 (Phone)

Sovereign Investment Lab, Baffi Carefin, Bocconi University ( email )

Via Roentgen 1
Milan
Italy

Brian Wolfe

University of Texas at San Antonio ( email )

San Antonio, TX 78249
United States

HOME PAGE: http://https://sites.google.com/site/swimwolfe/

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