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Family firms, political connections, and R&D activities in Eastern European Countries

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  • Mariarosaria Agostino

    (University of Calabria)

  • Cristiana Donati

    (University of Campania Luigi Vanvitelli)

  • Sabrina Ruberto

    (University of Naples L’Orientale)

Abstract

Although R&D activities can be effective means for firms to develop their innovation capacity, the current understanding of which informal institutions affect firms’ propensity to invest in R&D remains limited, especially in emerging and less-developed countries. Using a large sample of transition countries, this work investigates whether family ownership and political connections influence the firm’s propensity to invest in R&D, as well as in a specific type of open innovation (OI) strategy (i.e. performing simultaneously internal and external R&D activities). According to our evidence, both informal institutions seem encouraging firms to invest in R&D. Moreover, family and political connections appear increasing the engagement in the aforementioned OI strategy. Finally, the two kinds of networks seem to substitute each other in boosting the probability of investing in internal and external R&D activities.

Suggested Citation

  • Mariarosaria Agostino & Cristiana Donati & Sabrina Ruberto, 2023. "Family firms, political connections, and R&D activities in Eastern European Countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(3), pages 725-754, August.
    • Handle: RePEc:kap:empiri:v:50:y:2023:i:3:d:10.1007_s10663-023-09568-x
    DOI: 10.1007/s10663-023-09568-x
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    More about this item

    Keywords

    Family firms; Political connections; Internal and external R&D activities; Transition countries;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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