Ownership structure and innovation: is there a real link?

By R. Ortega-Argilés, Rosina Moreno, J. S. Caralt. 2005

133 citations recorded by the source corpus.

This study examines the relationship between the ownership and control structures of a company and its innovative activity. It seeks to analyse the effect of the internal features of a company’s ownership structure on decisions to initiate research and development activities and on the actual output of this innovative process. Specifically, we examine company ownership, the distribution of decision-making powers, the nature of these powers and the extent to which ownership is concentrated, among others. The analysis is performed on a representative sample of Spanish manufacturing industries for the year 2001. Our results are consistent with the hypothesis that internal factors are significant for the undertaking of R&D activities. In particular, we report that a high degree of ownership concentration and the use of debt financing serve to dissuade a firm from incurring R&D expenditure and do not favour R&D output.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/baffba2fc9d9292bee02d4640b70fdcee9182207

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Citations in the corpus

Do the Type and Number of Blockholders Influence R&D Investments? New evidence from Spain (2007, background): “One is the work by Ortega-Argiles et al. (2005), who considered ownership concentration and the rate of owners in management positions when analysing firms’ innovation activities.”
Ownership structures and R&D in Europe: the good institutional investors, the bad and ugly impatient shareholders (2013, background): “Since the seminal work of Schumpeter (1942), it is recognized that investments in innovation are crucial to economic development and companies’ growth.”
Corporate Governance and Innovation: A Survey (2012, unknown): “A similar conclusion is reached by Ortega-Argilés et al. (2005).”