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Are sustainable firms more innovative? The case of China

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  • Mitsunami, Kohei
  • Nakai, Miwa

Abstract

Although the impact of corporate social responsibility (CSR) on business and market performance has been getting attention in China, its influence on innovation outcomes has not been fully investigated. This study utilises patent information and CSR measurements from Orbis and Refinitiv, respectively, and empirically investigates the determinants of corporate innovation, focusing specifically on the influence of CSR. We find a positive relationship between CSR and innovation outcomes, namely patent applications and patents granted, which are also found in developed countries. Furthermore, our findings provide new insights into inconclusive factors such as the impact of Chinese economic policies or government ties on innovation performance. In particular, we find that government-owned firms no longer have a relative advantage in innovation.

Suggested Citation

  • Mitsunami, Kohei & Nakai, Miwa, 2024. "Are sustainable firms more innovative? The case of China," Japan and the World Economy, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:japwor:v:69:y:2024:i:c:s092214252400001x
    DOI: 10.1016/j.japwor.2024.101238
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    Cited by:

    1. Ting Su & Xiaokang Wang, 2024. "The impact of leadership on employees’ innovation behavior: evidence from China’s energy listed companies," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-8, December.

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    More about this item

    Keywords

    Corporate social responsibility (CSR); Innovation; Patents; China;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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