Conservative Media, Inventor Mobility, and Corporate Innovation

Abstract

We examine the impact of Sinclair Broadcast Group, the largest conservative media network in the US local TV markets, on corporate innovation following its staggered expansion across the country. We find a significant reduction in innovation output two to three years after Sinclair entry. As a larger proportion of inventors self-identify as left-leaning, we find that the effect runs through inventor mobility. Inventors leaving Sinclair-exposed firms are more innovative compared to those who stay or are newly hired. The effect of Sinclair on innovation is larger in states with fewer restrictions on employee mobility and in red states.

Keywords: political ideology, media, innovation, human capital mobility

JEL Classification: D72, J24, L82, J61, O31