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Political genes drive innovation: Political endorsements and low-quality innovation

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  • Wang, Yanyu
  • You, Qinghua
  • Qiao, Yuanbo

Abstract

Drawing on institutional theory and resource dependent theory, this study proposed that political endorsement of a firm, playing as political genes, restrains it from pursuing the low-quality innovation. Using data on 2406 Chinese listed companies spanning from 2008 to 2016, we find that the political endorsement significantly inhibits low-quality innovation. That inhibition is stronger among firms with more slack resources and weaker in provinces with greater market liberalization. Our findings provide contributions on the low-quality innovation from political perspective, and benefit for the innovation implications.

Suggested Citation

  • Wang, Yanyu & You, Qinghua & Qiao, Yuanbo, 2022. "Political genes drive innovation: Political endorsements and low-quality innovation," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 407-417.
    • Handle: RePEc:eee:streco:v:60:y:2022:i:c:p:407-417
    DOI: 10.1016/j.strueco.2021.12.009
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