Within-Firm Partisanship and Innovation

36 Pages Posted: 4 Jan 2024 Last revised: 26 Apr 2024

See all articles by Matthew Henriksson

Matthew Henriksson

University of Tennessee, Knoxville - Haslam College of Business

Anthony B. Rice

The Chinese University of Hong Kong (CUHK) - CUHK Business School

Date Written: April 25, 2024

Abstract

Matching inventors to their voter records, we analyze how individual partisanship within firms influences inventor productivity and turnover. Across 3,367 public and 91,960 private U.S. firms, we find no productivity benefits from partisan diversity. Inventors apply for and are granted more patents when they are more politically similar to their coworkers. Moreover, politically-diverse teams of inventors do not produce patents of superior quality. Regarding inventor turnover, inventors who are less politically aligned with their coworkers are more likely to leave their firm. Together, the evidence suggests that partisan diversity within firms may lead to increased turnover and lower productivity.

Keywords: Innovation, Partisanship, Teams, Productivity, Patents

JEL Classification: O31, O34, M14, J24, D72

Suggested Citation

Henriksson, Matthew and Rice, Anthony B., Within-Firm Partisanship and Innovation (April 25, 2024). Available at SSRN: https://ssrn.com/abstract=4678477

Matthew Henriksson

University of Tennessee, Knoxville - Haslam College of Business ( email )

453 Haslam Business Building
Knoxville, TN 37996-4140
United States

Anthony B. Rice (Contact Author)

The Chinese University of Hong Kong (CUHK) - CUHK Business School ( email )

Room 1052, 10/F, Cheng Yu Tung Building
12 Chak Cheung Street
Shatin, New Territories
Hong Kong
+1 (954) 805-5505 (Phone)

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