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Information Accessibility and Corporate Innovation

Author

Listed:
  • Dongmin Kong

    (School of Finance, Zhongnan University of Economics and Law, Wuhan 430073, China; Faculty of Business, Lingnan University, Hong Kong, China)

  • Chen Lin

    (Business School, The University of Hong Kong, Hong Kong, China; Faculty of Business, Lingnan University, Hong Kong, China)

  • Lai Wei

    (School of Finance, Zhongnan University of Economics and Law, Wuhan 430073, China; Faculty of Business, Lingnan University, Hong Kong, China)

  • Jian Zhang

    (Faculty of Business, Lingnan University, Hong Kong, China; School of Business and Management, Shanghai International Studies University, Shanghai 200083, China)

Abstract

This study identifies information accessibility as a determinant of corporate innovation. Using the sudden termination of Google’s search services in China, we find a persistently large negative effect on the intensity and quality of innovation among firms relying on foreign knowledge. The results are stronger for firms in industries dominated by foreign technology, in regions with local web filters, and for firms with fewer alternative sources of foreign information. We also find that the affected firms cite fewer foreign patents and their innovation efficiency declines after Google’s exit. Overall, the results are consistent with the view that access to information is an important driver of technological progress.

Suggested Citation

  • Dongmin Kong & Chen Lin & Lai Wei & Jian Zhang, 2022. "Information Accessibility and Corporate Innovation," Management Science, INFORMS, vol. 68(11), pages 7837-7860, November.
    • Handle: RePEc:inm:ormnsc:v:68:y:2022:i:11:p:7837-7860
    DOI: 10.1287/mnsc.2021.4224
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    References listed on IDEAS

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