IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v93y2024ipbp602-624.html
   My bibliography  Save this article

The Mist of corporate innovation

Author

Listed:
  • Chiu, Ya-Ling
  • Luo, Jinbo
  • Boscaljon, Brian L.

Abstract

This study investigates the impact of air pollution on corporate innovation. Using the satellite generated Particulate Matter 2.5 concentration data in 390 cities in China over the period of 2000–2015, we find that severe air pollution (haze pollution) in a region may deteriorate the innovative performance of companies in the same region. Our results are robust to different air pollution and innovation measures. We employ both difference in differences and instrumental variable approaches to alleviate potential endogeneity concerns. In addition, we identify two possible mechanisms, reduced funds availability and loss of innovative talents, to explain the negative impact of air pollution on innovation.

Suggested Citation

  • Chiu, Ya-Ling & Luo, Jinbo & Boscaljon, Brian L., 2024. "The Mist of corporate innovation," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 602-624.
    • Handle: RePEc:eee:reveco:v:93:y:2024:i:pb:p:602-624
    DOI: 10.1016/j.iref.2024.04.039
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056024002946
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2024.04.039?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Corporate innovation; Air pollution; Haze; Patents;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:93:y:2024:i:pb:p:602-624. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.