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Evidence On The Role Of Ownership Structure On Firms’ Innovative Performance

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  • Raquel Ortega-Argilés

    (European Commission, JRC-Institute for Prospective Technological Studies (IPTS) – Knowledge for Growth Unit (KfG), Industrial Research and Innovation (IRI))

  • Rosina Moreno

    (Faculty of Economics, University of Barcelona)

Abstract

Based on the Knowledge Production Function framework given by Griliches (1979), we slightly modify it so that the innovative output depends upon a set of factors related to the firm internal characteristics and are influenced by the environment. Specifically, regarding the firm internal determinants the effect of the concentration of the ownership, the composition of the boards of directors and the effect of the nature of the ownership (foreign and public) are analyzed. Additionally, in order to capture the determinants of the environment in which the firm operates other variables concerning the internationalization of market, the agglomeration economies and the regional knowledge externalities are also considered. In order to assess the impact of these determinants on the number of patents and models of use awarded by the firm, the discreteness of the latter variable has to be taken into account. We apply Poisson and Negative Binomial models for a more comprehensive evaluation of the hypothesis in a panel of Spanish manufacturing firms. The results show patenting activity is positively favoured by being located in an environment with a high innovative activity, due to the existence of knowledge spillovers and agglomeration economies.

Suggested Citation

  • Raquel Ortega-Argilés & Rosina Moreno, 2009. "Evidence On The Role Of Ownership Structure On Firms’ Innovative Performance," IREA Working Papers 200909, University of Barcelona, Research Institute of Applied Economics, revised Apr 2009.
    • Handle: RePEc:ira:wpaper:200909
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    6. Ortega-Argilés , Raquel & Moreno, Rosina, 2009. "Evidence on the role of ownership structure on firms’ innovative performance," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 15, pages 231-250.
    7. Elif Kalayci & Mehmet Teoman Pamukçu, 2011. "Analysis of Foreign Ownership, R&D and Spillovers in Developing Countries: Evidence from Turkey," Working Papers 642, Economic Research Forum, revised 10 Jan 2011.
    8. Miguel Santolino & Catalina Bolancé & Manuela Alcañiz, 2011. "Factors affecting hospital admission and recovery stay duration of in-patient motor victims in Spain," IREA Working Papers 201119, University of Barcelona, Research Institute of Applied Economics, revised Oct 2011.
    9. Germà Bel & Xavier Fageda & Melania Mur, 2011. "Why do municipalities cooperate to provide local public services? An empirical analysis," IREA Working Papers 201118, University of Barcelona, Research Institute of Applied Economics, revised Oct 2011.
    10. Diukanova, Olga & López-Rodríguez, Jesús, 2014. "Regional Impacts of non-R&D Innovation Expenditures across the EU Regions: Simulation Results Using the Rhomolo CGE Model," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 29, pages 91-111.
    11. Aric Xu Wang & Kevin Zheng Zhou, 2022. "Financial munificence, R&D intensity, and new venture survival: critical roles of CEO attributes," Small Business Economics, Springer, vol. 59(4), pages 1641-1659, December.

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    More about this item

    Keywords

    Knowledge production function; patents; R&D; ownership; regions;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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